Sometimes the packaging is robust and protective, sometimes it’s more oriented toward merchandising. In the space of just a few weeks recently, I heard two packaging professionals describe a new role for packaging: helping to dress up the image of a company that was, as the financialati might say, “in play” or “being shopped.” In one case, a management-type was describing what he felt were a company’s questionable tactics: using new packaging to try to secure a premium over what might have been a fair market price. This manager represented a company that had been interested in acquiring the subject company, but withdrew once due diligence (examining the figures) had begun. In the other instance, the story was related by an insider who has become an outsider. This is a packaging professional who had been deeply involved in one of the projects that helped create a glossy image for his company. He also participated in several company-sponsored, publicity-generating events to make the new packaging widely recognized and appreciated. He emphasized that the project wasn’t a relatively simple shift from one container to another, although the new package is markedly different from its predecessor. It required new technologies both in packaging materials and in filling machinery. In other words, the packaging change was about as far from superficial as possible. True or not, this professional believed his management funded the research and invested in this packaging project with the primary goal of creating a healthy, exciting “buzz” about the company. Now, there’s little doubt that the excitement created by the new package, along with its attendant promotion, gave a substantial boost to product sales and share of market in its category, and the company management can’t be faulted for that. There’s little doubt that this would be the first line of defense, should anyone question management’s motivation. To be fair, it’s important to mention that this source completed both the package development project and helped generate the industry publicity. Some weeks later when the company was involved in a merger, the source found that the packaging group the professional headed—and the individual, too—were cast aside. So it’s fair to question whether the criticism might be just another case of sour grapes. Despite having two separate sources claiming that packaging developments are sometimes used to attract attention just before a company is put up for sale, I probably wouldn’t be writing about it here. But a conversation with a securities analyst sealed the deal. He confirmed that he’d heard that some business M&A (merger and acquisition) consultants did, in fact, use packaging hype as a “marketing tactic” in building or possibly inflating the value of a company. Of course Packaging World and other media can be part of that hype. We know that companies that work with us to publish stories about their packaging or packaging operations often have their own agenda. And it’s probably totally different from advancing the overall knowledge of the people in our business. The real question is: Is this a tactic to applaud, or one to deride? At first glance, it seems like it’s an artificial way to add value. But there isn’t anything artificial about creating unique packaging to regenerate a dormant product. And as the out-of-work professional reminded me, “You always fix up the house just before you move.”
