Automation Crushes Coffee Maker’s Packaging Inefficiencies

Napco Brands automates its end-of-line palletizing across two packaging lines and extends its plant workforce while reducing turnover and safety risks by eliminating manual operations.

The palletizing solution receives boxes from a case sealer, and each line now moves 1,500 boxes daily to pallets.
The palletizing solution receives boxes from a case sealer, and each line now moves 1,500 boxes daily to pallets.
Universal Robots

Private label brands are flexing their muscles. Over the last five years, private label sales have increased by more than 30%, or $64.8 billion, according to the 2026 Private Label Report from the Private Label Manufacturing Association. “Store brands have moved from just another item on the shelf to whole lines competing head to head with national brands and even setting the pace in some food and non-food categories and subcategories,” says Peggy Davies, PLMA President.

Unit sales growth is a good problem to have, but overall, the food industry isn’t meeting growth and margin targets. “Innovation is needed to tackle more since food companies are not launching fast enough and missing margin,” said Arnold Kogan, Managing Director and Partner with Boston Consulting Group (BCG), during the “The Connected Worker -  Manufacturing Summit” in October 2025.

Napco Brands has been roasting and producing coffee since the early 1900s and has four in-house brands. Ali Papanicholas, Quality Assurance and Green Coffee Buyer at Napco Brands, tests multiple coffee samples.Napco Brands has been roasting and producing coffee since the early 1900s and has four in-house brands. Ali Papanicholas, Quality Assurance and Green Coffee Buyer at Napco Brands, tests multiple coffee samples.Napco BrandsCo-manufacturers and medium-sized food producers are searching for innovation with less capital. Many food producers have chosen to automate palletizing with collaborative robots to increase unit production, reduce changeover times, utilize capacity, and address workforce turnover. 

Chicago-based Napco Brands recently implemented a collaborative robot solution for two packaging lines, resulting in higher volumes and increased plant utilization. The company roasts and packages four in-house coffee brands and produces coffee for private-label brands.

According to IBISWorld market reports, the number of businesses classified as coffee producers—roasters and manufacturers—has more than doubled in the last decade. Companies include micro-roasters, direct-to-consumer (DTC) startups, and nimble regional chains, and they have seen the U.S. coffee industry grow by 7.6% annually since 2016.

These companies need co-manufacturers with high-quality packaging and processing standards. “At Napco, we have a lot of capability to pack for private label,” says Eric Latsch, Sales Director, Napco Brands. “We have a lot of factory services we can offer, anywhere from roasting to packing it into a sealed container for retail sale, or for restaurant or food service businesses.”

To increase volume and margins, Napco Brands identified the need for more automation and robotics with palletizing. Napco has two production lines manufacturing single-serve coffee cups, but the processes were manual: An operator boxed the cups and brought the box to another operator who taped and palletized the boxes.

“Repeatable, repeated twisting and lifting overhead is a rough ergonomic application,” says Michael DeGrace, Key Account Manager at Teradyne Robotics. “It’s a high priority for food producers to find ways to deploy automation and reduce risk whenever possible.” 

Napco Brands worked with FPE Automation, a supplier and distributor of automation components, and DesignHawk Innovations, a system integrator, to identify the right collaborative robot applications for two new production lines. Napco chose two AX10 automated palletizing solutions from Robotiq featuring the UR12e collaborative robots (cobots) from Universal Robots (UR). The high-load collaborative robots can handle a variety of pallet heights and can be customized to stack different-sized boxes in any pattern, such as turning boxes so that the box labels are visible on all sides of the pallet.

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