Jun 30, 2008 6:50 pm US/Central
Costco Introduces Cheaper-To-Ship Milk Jugs
ST. LOUIS PARK, Minn. (WCCO) ―
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Costco's suppliers are shipping more milk and less air. That's part of the reason for the low price, just $2.55 for a gallon of skim.
CBS
High fuel prices aren't just changing the way we live; they're also changing the shape of the products we buy. Costco has introduced a more efficient milk jug that promises to reduce shipping and storage costs.
Bill Archer is the general manager of the St. Louis Park Costco.
"It's like anything else, when you change something that everybody's used to, it takes some getting used to," said Archer.
The store's energy-efficient milk jugs don't come with directions, but given the feedback from some customers, maybe they should.
"Don't lift it up and try and pour it, just tilt the jug and it tends to pour spill-free that way," Archer explained.
"It's square, so it actually is easier for the kids. They can actually tip and pour it," said Costco shopper Ann Wilner. "When it's halfway down, my six-year-old can tip and pour it. When it's a little lower than that, my four-year-old can do it."
Why did Costco ditch the traditional milk jug? Simple, it saves space and energy.
"It reduces the transportation, the number of times the trucks need to come to the building to deliver the same amount of milk," said Archer.
Costco's suppliers are shipping more milk and less air. That's part of the reason for the low price, just $2.55 for a gallon of skim. When it comes to packaging, square is in. Round is out.
"Anything that's gonna be square is gonna store better than something that's round," she said.
Like Costco's cashews.
"They don't know why they like it better, but they like it better," said Wilner.
The nuts are a hit, fitting better on the shelf, the truck and in the hand.
"It's easier to use, it's easier to grab, just because it's square versus when it was round," explained Archer.
Another sign of fuel-efficient packaging is in the laundry detergent aisle. Higher concentration equals lower shipping costs.
At the Plymouth Kwik Trip, the store sells milk in a bag and throws in a plastic pitcher for free.
"After you snip and use what you want, immediately just store it, you just twist it into the notch, and it stays fresher," said Micah Pieper, store manager.
The storage savings are tremendous. Pieper says unfilled bags take up one-twentieth the space of unfilled jugs. Shipping's cheaper too, about 25 percent less. So is the price.
"Typically the bags are 30 to 40 cents difference, as opposed to the plastic jugs," said Pieper.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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