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clock Jul 16, 2007 11:03 pm US/Central

The Incredible, Shrinking Packaging

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Jason DeRusha
Reporting

(WCCO) Boxes, bottles and containers are starting to shrink in size at stores and it's not because corporations are trying to rip people off. There's a major effort underway to cut down on over-sized and over-wrapped packaging.

When it comes to toilet paper most of us think about flushing it. Julie Idelkope's and her colleagues at Wal-Mart are thinking about shrinking it, making six mega-rolls, with the same paper used from 12 regular rolls.

"That is the reaction that we originally got when we started this, but the Wal-Mart customer really cares about the environment," said Idelkope, a Wal-Mart senior manager of public affairs.

The nation's largest retailer is trying to cut 5 percent of its total packaging. They've created a scorecard to rate packages asking question such as are they recyclable or are they wasteful?

Wal-Mart helped All detergent develop "Small & Mighty", which is concentrated.

Crest is making toothpaste in stronger tubes, so they don't have to put them in boxes.

Nestle is saving 4 million pounds of paper a year, by using narrower water bottle labels.

Woodbury Wal-Mart manager Ken Ridgeman sees a lot of garbage in the back room of the store. The company also wants less packaging in its deliveries.

"It really does have a direct impact on reducing waste in landfills," said Idelkope.

When Wal-Mart announced their proposal to shrink packaging, there were critics saying Wal-Mart is just trying to make a bunch of money. In a way Wal-Mart agrees because part of this effort is about making money.

Wal-Mart expects to save $3.4 billion over 5 years because there will be less money spent on trash disposal and more shelf room to sell products.

"Being good for the environment is good business. And Wal-Mart has figured out a way to reach both of those goals," said Idelkope.

With Americans eating 27 million bowls of General Mills cereal in just one morning, the Golden Valley, Minn. company has a big environmental footprint. This year they cut the steel content of its Progresso Soup cans. It's the same amount of soup in a lighter can.

"Well, it's a huge cost item for us. So the more efficient we can be, 350 tons less steel is more efficient for us. We're buying less steel, using less steel in those cans," said Tom Forsythe, a vice-president at General Mills. "We have people who do nothing but look at these packages everyday and think, 'How can I make this better."

General Mills shrunk the Hamburger Helper box by 20 percent. The box is smaller but it's the same helper.

"We have 500 fewer distribution trucks on the road moving the same amount product," said Forsythe.

He said his company wants to save the planet but they also want to save money. They also invented a cardboard shipping case that has a window, which means 25 percent less cardboard.

Wal-Mart is the biggest buyer of General Mills product so when Wal-Mart started talking about shrinking packages, General Mills was listening.

"It's only getting more important but it's an area we've done a lot of good work and we're really proud of it," said Forsythe.

As suppliers change their packages to make Wal-Mart happy, those same smaller packages end up in every other store which is saving money and saving resources to more than just one retailer.

"What we've found is it's really a win-win for everyone," said Idelkope.

Next year, Wal-Mart plans to use the grades from its packaging scorecard to make buying decisions. The company also plans to give better spots on the shelves to environmentally-friendly products to help them succeed.

(© MMVII, CBS Broadcasting Inc. All Rights Reserved.)

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