Mexican packaging firm makes inroads in U.S. market 22120

Common sense usually dictates that plastic packaging is not a product that

can be economically shipped over distance, but one Mexican processor is showing that’s not always the case.

According to Moris Guterman, director general of injection molded and thermoformed rigid container supplier Envases Cuautitlán (Cuautitlán, Mexico), “We are growing fast in ethnic markets such as the Latin American one in California where the volumes don’t excite the big local players. Our strengths are understanding these niche markets and having the flexibility to provide personalized solutions and service.”

Guterman says that resin prices are also competitive in Mexico and, if shipping to non-coastal locations in the U.S., costs can actually be lower from Latin America. Envases Cuautitlán also operates facilities in Colombia and Venezuela, from which it can ship by sea to locations such as Chicago. It has also set up warehouses in strategic locations across the U.S. and promises a maximum shipping time of four days.

IML alternatives

Guterman also has something to say about the use of inmold labeling (IML) in the packaging sector. “IML entails a high investment level (of $1-2 million) and the process lacks flexibility,” he notes. “It’s fine if you have a high-volume process and a customer with a long-term commitment to a specific design, but if for some reason your customer decides to change the container size or dispense with IML, you’re in trouble.” Guterman has seen cases where IML is adopted for a food product that is first to market where the 15-20% higher cost of IML versus printing can be justified by high volumes or a price premium. “But once competitors enter the market, often the first thing that goes is IML.”

Guterman says alternative technologies such as adhesive labels, shrink sleeves, and cardboard sleeves are lower in cost, more flexible, and, importantly, the quality perception can be just as good. Cardboard sleeves also offer the option of incorporating printing on the inside surface for promotional purposes, for example. “Shrink sleeves, meanwhile, have no form restriction, exhibit a glossy surface, and can easily be reconfigured if the product size changes,” he says.

Guterman does note that IML is a good solution for the European market where labor costs are higher: “You don’t need to warehouse the containers prior to labeling, nor incur extra costs in the labeling process.” He also says IML is fine for premium products like promotional items in movie theaters. “If you’re selling a Spiderman cup for $1, you can afford to use IML,” he notes.

Thermoforming at altitude

Envases Cuautitlán has also been investing extensively in thermoforming capacity of late. “The big issue with injection molded containers in Mexico and Colombia is that food processors fill at high altitudes, sometimes at over 8000 feet (about 2500m),” says Guterman. “With the industry tendency to downgage, injection molded containers flex inwards when they’re at sea level and you can end up having a yogurt explode in your face.” The orientation inherent in thermoformed packaging results in higher mechanical strength and forms a container better suited to making the altitude transition, he says.

Five years ago, 95% of the capacity at Envases Cuautitlán was injection molding. “Now it’s 70/30 split in favor of injection, but I expect thermoforming to account for 50% within a few years,” says Guterman.

One area where injection molding is expected to continue to dominate is large containers and lids, such as 1-kg yogurt containers. “These large containers are the ‘people’s Tupperware,” often used to store rice once they’ve been emptied. “We have to ensure a good seal for this second use,” says Guterman. High-speed filling lines also prefer injection molded containers.