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Chewing up market share

New pack and product size necessitate a $7 million investment in packaging machinery for Warner-Lambert Canada. A 4.4 percentage point gain in market share justifies investment in customized flow wrappers, laser coders and display carton overwrappers.

The laser-coded roll of printed material unwinds (from left to right) into the first station within the flow wrapper for sealing
The laser-coded roll of printed material unwinds (from left to right) into the first station within the flow wrapper for sealing

In a bold effort to increase market share within its country, Warner-Lambert Canada invested $19 million Canadian ($7 million of it for packaging machinery) to reintroduce its popular "slab" gums, such as Trident and Dentyne, in a weightier piece size, with a new 8-pack replacing a more traditional 7-pack.

According to the company, Canadians prefer slabs to sticks, the latter popular in the U.S. Typically, the slabs are individually wrapped in printed waxed paper, then positioned side-by-side. This flat row of individually wrapped pieces is then overwrapped to create a flat, rectangular package. On the other hand, sticks tend to be wrapped individually in foil, then banded with paper. Subsequently, they're stacked to make a 7-count pack, common for manufacturers like Wrigley's.

For years, Warner-Lambert Canada sold slab gums in a 7-pack and in a 16-piece version called Superpak 16. But in mid-'94, the company eliminated the 7-pack in favor of an 8-pack. It also increased its per piece weight from 1.85 to 2 g. While the Superpak 16 count remained unchanged, its larger piece weight made it a better buy. Additionally, its package configuration changed from a single layer of 16 pieces standing on edge to two rows of eight pieces lying on their width dimension. With no upcharges to either pack, Canadian consumers receive more flavor for their money.

To accommodate these changes, Warner-Lambert invested $7 million for new packaging machinery and materials at its Scarborough, Ontario, plant. New equipment includes: Eight "Special Edition" horizontal flow wrapping systems supplied by Klockner Ho/oonsel Tevopharm (Sarasota, FL); eight Directed Energy, Inc. (Irvine, CA) direct digital laser coders, the technology for which has since been acquired through Domino Amjet (Gurnee, IL); four B.F.B. SpA Model 3791 display carton overwrappers, available from IMA North America (Fairfield, CT); and two Klockner Bartelt (Sarasota, FL) IMCS cartoners.

While it's never easy to justify a multi-million dollar investment, Warner-Lambert's reintroduction has succeeded. "Between 1994 and '95, we increased our market share by 4.4 percentage points," notes Norm Medeiros, manager of manufacturing engineering. He contends that the gain itself provides ample justification for the investment. However, the new packaging machinery yields these additional benefits:

* A hermetic pack seal that extends shelf life from 12 to 18 months;

* Labor savings of $300ꯠ/yr gained through more productive wrapping of packs,

* Material savings of $300ꯠ by switching to a thinner gauge and narrower web width on film used to overwrap display cartons;

* Labor savings of $280ꯠ by automating Superpak display carton loading; and,

* More legible and effective coding of individual packs (see sidebar).

Tailored for gum wrapping

Gum varieties are made and packed at the company's Adams Brand Manufacturing Division in Scarborough, Ont. Designated 40 Bertrand, after its street address, the plant produces pressed mints, boiled candies, and gum. The latter accounts for 60% of the plant's volume. Warner-Lambert packages gum on 17 lines, in slab, stick, chunk and pellet forms.

Eight lines are dedicated to slab gums, the biggest sellers. At the heart of each line is now a Tevopharm flow wrapper custom-made for Warner-Lambert. They're designated "Special Edition" Pack 5 DL (dual-lane) horizontal flow wrappers. The company also uses the equipment at plants in Greece and Mexico.

Six of these units are used for 8-packs; two for the Superpaks. The Tevopharms wrap 1꼀 slabs a minute. With eight slabs per pack, that results in an output of 225 eight-packs, or 110 16-packs per minute.

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