Hormel® Chili converts to Silgan Containers’ easy-open ends; first-in-category, red pull tab supports brand equity

Woodland Hills Calif. (Oct. 31, 2007) —Hormel® Chili has just converted its 15-ounce steel cans from sanitary to Quick Top® full-panel, easy-opening (EZO) ends from Silgan Containers. The brand is the first in the chili category, and one of only a few food products, to use a colored pull-tab to create differentiation and convenience.

A 300-diameter, gold-colored EZO steel end is now accented by a red tab, which is a significant departure from the silver-colored sanitary end used throughout the brand’s 70-plus year history. (The can is 300 x 407 two-piece, drawn and ironed steel.) The colors were chosen to support Hormel® Chili’s red and yellow brand equity conveyed by the label.

To ensure that Quick Top® ends are the best-in-class, Silgan has incorporated a variety of ergonomic elements into the design. This includes making the back of the pull-tab flat (not rounded) to provide a better tactile surface for grasping and bending the tab slightly to enable easier finger access.

“Putting an EZO end on a package tends to be perceived by consumers as more modern by today’s standards. That works in concert with our goal to have Hormel® Chili be viewed as a relevant, convenient and contemporary product,” said Bob Pepper, group product manager, Hormel brand.

The company was looking for ways to increase its already strong usage in the home. Research shows that not only are consumers willing to pay more for the convenience of EZO ends, but they tend to let products with traditional ends sit in the cupboard while brands with EZOs are selected first. Brands that convert to EZO ends also realize sales lift, due to consumer preference.

“We had heard from consumers about the benefits of EZO through a variety of research approaches. Silgan worked with us to help us validate those findings,” Pepper said.

“We also started to think about the brand’s color equity and that’s when we started exploring end and tab alternatives. Sure enough, we discovered that Silgan could make a red tab that would match our equity,” Pepper said.

“Putting such a prominently-colored tab on the can end enabled us to leave the EZO communication off the new label design. We felt that the red tab really brought attention to the can and made the conversion evident without it needing supporting copy,” said Marty Wolesky, product manager, Hormel® Chili.

Timing was the other critical aspect of the conversion. “We stated the clear objective of being ready for chili season and we hit it. We worked closely with Silgan to ensure a smooth and timely conversion with all of our production facilities,” Wolesky said.

In total, more than 14 Hormel® Chili SKUs are currently in the process of being rolled out with the new EZO end. This includes varieties that are considered part of the brand’s core “bean” and “no bean” formulation. Additional varieties include: turkey, chunky, hot, Tabasco®, vegetarian, less sodium and home-style.

The launch also is being supported by new labels, which reflect an upgraded brand mark and showcase convenience usage. Hormel’s “no bean” chili varieties are typically used as ingredients, toppings, etc, while chili containing beans tends to be eaten out of a bowl. Label graphics help convey that differentiation.
Although the varieties have just recently reached retail shelves, Hormel Foods has already received positive consumer feedback.

“We’ve actually gotten calls from consumers already thanking and complimenting us for making the switch. The sound bites we are getting are consistent with what we heard prior to launch from our focus groups. In terms of sales lift, our top line numbers are already showing improvement compared to a year ago,” Pepper said.

Hormel Foods Corporation, based in Austin , Minn. , is a multinational manufacturer and marketer of consumer-branded food and meat products, many of which are among the best known and trusted in the food industry. The company leverages its extensive expertise, innovation and high competencies in pork and turkey processing and marketing to bring quality, value-added brands to the global marketplace. For each of the past eight years, Hormel Foods has been named one of “The Best Big Companies in America ” by Forbes magazine. The company enjoys a strong reputation among consumers, retail grocers, foodservice and industrial customers for products highly regarded for quality, taste, nutrition, convenience and value. For more information, visit www.hormelfoods.com.

Silgan Containers, a subsidiary of Silgan Holdings, is the largest manufacturer of metal food containers in North America, with approximately half of the U.S. unit volume

in 2006 and net sales of $1.6 billion. Silgan’s partnership approach, supported by quality,

service, technology, low-cost producer position, strategically-located geographic locations and extensive consumer research, is the cornerstone of its strong customer relationships.

Silgan Containers manufactures and sells steel and aluminum containers and ends that are used primarily by processors and packagers for food products, such as soup, vegetables, fruit, meat, tomato based products, coffee, seafood, adult nutritional drinks, pet food and other miscellaneous food products. For more info visit: www.silgancontainers.com.

 

Media Contacts:
Carolyn Takata Sophia Dilberakis

Silgan Containers SD Communications

(818) 710-2420 (312) 787-5800

ctakata@silgancontainers.com sophiad@att.net

 

Please forward sales inquiries to:

Silgan Containers, Inc.

21800 Oxnard St # 600

Woodland Hills , CA 91367

Phone: (818) 348-3700

Email: generalinfo@silgancontainers.com

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