The packaging market for fruit and vegetables is constantly evolving. Sustainability, changing retail demands, smaller product sizes, and rising transport costs mean packaging companies have to adapt continuously. For J&S Packaging, flexibility is therefore a key asset. "You need to know the customer well and be able to respond quickly to what's happening. In the fruit and vegetable sector in particular, a customer might ring in the morning and expect you to be able to deliver that very evening," explains Simon Landsheere of J&S Packaging.

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Jim Segers and Simon Landsheere of J&S Packaging

J&S Packaging traces its origins back some fifty years. The company was founded by Johan Segers and is now run by his sons Jim and Steve Segers, from whom the name J&S Packaging is derived. Operating from several locations, the company specializes in corrugated cardboard packaging and related products for a range of sectors, but for several years now, the Sint-Katelijne-Waver site has focused firmly on the fruit and vegetable sector. "Here, we assemble trays and fruit trays, amongst other things. We deliberately do this close to our customers. Assembled boxes and trays take up much more space in a lorry. If you have to transport them over long distances, the transport costs quickly mount up."

As well as assembled boxes and trays, J&S Packaging supplies bottom-lid boxes, cover sheets, crate labels, and corner protectors, amongst other products. Packaging is also assembled in Sint-Truiden, where the company is located close to the auction. In addition, J&S Packaging has a sales office in the Netherlands.

Growth in cardboard packaging
According to Simon, the decision to focus strongly on corrugated cardboard and the fruit and vegetable sector has proven to be a sound strategic move. Particularly during the coronavirus pandemic, the company saw a sharp rise in demand for fruit and vegetable packaging. "During the pandemic, demand for fruit and vegetable packaging suddenly rose sharply. We saw significant growth in trays at that time. That growth has since leveled off somewhat, but the use of cardboard packaging remains important."

According to Simon, various factors play a role in this. Cardboard not only offers marketing opportunities but also aligns with the sustainability objectives of many companies. "You can present your product well with cardboard packaging, and there are many possibilities when it comes to printing. At the same time, cardboard is fully recyclable."

J&S Packaging offers various types of trays, depending on the customer's requirements. "For example, there are sticker trays, traditional trays and banded trays. Various combinations are also possible with top sealers. We are constantly assessing which packaging format best suits the market."

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Retail
Although it long seemed as though the market would be forced to move towards cardboard, Simon is reluctant to predict how the packaging market will develop. Much depends on the choices retailers make. "The power of the retail sector is, of course, undeniable. If a retailer asks for a plastic tray, our client will often simply comply with that request. We at J&S Packaging aim to act as a proactive partner and advisor to both growers and retailers in order to arrive at feasible, sustainable packaging solutions."

At the same time, J&S Packaging recognizes that retailers and packaging suppliers are not all moving in the same direction. Whilst one client is already fully committed to cardboard, for another, plastic remains an important option. "Some clients tell us that packaging needs to change completely, whilst others aren't concerned with that at all. So it's difficult to say that the whole sector will move in the same direction in the short term."

Direct contact with retailers can help in this regard. "We have direct contact with certain retailers. That's useful, because it allows you to better explain what is and isn't technically possible. Ultimately, you need to work together to find a solution that works for the whole supply chain."

Transport determines packaging
Logistics is a key part of that assessment. With assembled packaging in particular, transport can account for a large proportion of the cost price. "With a pallet of flat-packed boxes, for example, you can transport far more units. With pre-assembled boxes, it's a different story. Far fewer fit onto a lorry, which means transport costs carry much more weight. In that case, it's really important to be located close to the customer."

For customers with sufficient volume, it can therefore be worthwhile to assemble the packaging themselves. "If a customer needs a certain quantity, it can be more cost-effective to supply just the sheets and have them assemble the boxes themselves. This still happens regularly." According to Simon, J&S Packaging can offer added value here thanks to the expertise it has built up. "We assemble boxes and trays on a daily basis. As a result, we often have a better understanding of the machinery and the possibilities than a customer who only carries out such a process to a limited extent themselves."

Flexibility as a distinguishing feature
The volatility of the fruit and vegetable sector also has direct consequences for the packaging manufacturer. After all, a change in the size of the product can mean that the packaging must also be adapted. "That's a challenge we see very often. You reserve paper and materials in advance so that you can produce quickly. But if the harvest ultimately turns out to be smaller and the packaging therefore needs to be smaller, you have to adjust the size. Then you may be left with material that has already been reserved or produced."

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Moreover, smaller packaging does not automatically mean that costs fall proportionally. "You also have to consider the die-cut shape. If you cut a particular size from a sheet of cardboard and the size changes, that die-cut shape must also change. That, in turn, incurs further costs." On top of that, such changes often have to be implemented at very short notice. "Sometimes it has to be sorted within two days. That makes it tricky, because you have to realign materials, production and planning all over again."

For J&S Packaging, flexibility is therefore a key part of its business strategy. "We try to set ourselves apart primarily by being flexible and maintaining a good relationship with the customer. You need to know what's going on with your customer and sometimes be able to suggest a solution before they've even looked for one themselves."

According to Simon, the value for money must, of course, be right. "The value for money must be very good. You can't simply be ten per cent more expensive than your competitors, because then you'll price yourself out of the market. It's a balance between price, quality and service." Regional presence also plays an important role in this. "You need to be close to your customers. In some regions, our competitors have a stronger presence, and we need to be realistic about that. We mainly try to maintain a strong position in the regions where we have a good customer base."

Focus on consolidation and providing a hassle-free experience for existing customers
Although J&S Packaging continues to explore new opportunities, Simon says the focus for the future is not on unbridled growth. "We hear the same from other companies. Our growth now lies mainly in providing a comprehensive package (cross-selling corner protectors, box liners, etc.). It is therefore particularly important to consolidate what we have whilst continuing to look for new customers and new applications."

An important growth opportunity lies precisely with existing customers. "We must also keep looking at what else we can do for our existing customers. For example, we supply the assembled boxes and trays here, but also corner protectors, box liners and other packaging materials."

Combining different products also allows for more efficient deliveries. "If we're delivering to a customer anyway, we can, for example, include standard corner protectors in the delivery. That's convenient for the customer and makes transport more efficient. This can be particularly beneficial for export products, as they often have to travel long distances."

Efficiency is becoming increasingly important
According to Simon, the biggest challenge for the coming years lies not only with the market, but also internally. "Efficiency is a key focus for us. The world doesn't stand still, and there are still steps to be taken in terms of technology and IT. We need to invest in these areas to be able to work more efficiently."

© J&S Packaging

In his view, greater efficiency is not only important for the internal organization, but ultimately also for the company's competitive position. "If you can work more efficiently, that ultimately also has a positive impact on your cost price." At the same time, relationships with customers and suppliers remain a key pillar. "It is always easier to retain an existing customer than to attract a new one. That is why we consider it very important to maintain good relationships and to evolve alongside our customers and suppliers."

For J&S Packaging, this means, above all, continuing to listen to the market. After all, the packaging sector is directly affected by changes in the fruit and vegetable supply chain. "We also see the volatility in cultivation and trade reflected in our sector. If the product changes, the packaging sometimes changes too. As a packaging company, you then need to be able to adapt quickly. That can be tricky at times, but that is precisely where our added value lies."

For further information:
Simon Landsheere
J&S Packaging
Kempenarestraat 55 C
2860 Sint-Katelijne-Waver
+32 (0) 15 41 28 74
[email protected]
www.j-and-s-packaging.com