IFCO Sees Organic Produce Industry Demand for RPCs Continue to Grow

IFCO Systems has a rich history of supplying the produce industry with reusable plastic containers (RPCs) to the produce industry that offer multiple cost and environmental benefits.

The company, headquartered in Munich, Germany, celebrated its 25^th anniversary in 2020 and now operates in 50 countries throughout the world.

“We are in our 15^th year in the US market and started with strong partnerships with a couple of the big retailers and since expanded that,” said Bryan Tate, vice president, product and category development for IFCO Systems. “We continue to expand on our partnerships with retailers who look to reduce waste and reduce cost in the supply chain with reusable containers.”

IFCO’s niche has largely been around fresh fruit and vegetables, and almost since the onset of its operating in the US, organic has been a big part of its business.

“One of the first things people want to know is if our products are authorized and ready for organic, and they are,” Tate said. “We have been OMRI listed for well over 10 years, and we feel it’s important to be prepared to support the organic business—and felt this even before it exploded to the levels that we see today.”

“We continue to expand on our partnerships with retailers who look to reduce waste and reduce cost in the supply chain with reusable containers.” -Bryan Tate

IFCO’s commitment to sustainability reaches far beyond its RPCs as the company’s philosophy is to operate without compromising its responsibilities to the environment, the people, and the communities it works with.

Tate noted that the food-safety data and science applied to the program—for both organic and non-organic produce—is top-notch.

RPCs can be used for produce display

“We built a lot of what we do out of the foundation of food safety from our partners,” Tate said. “For us, it’s just a foundation of what we do. When I think about an organic grower and the organic space, fresh produce is hard, with lots of time, investment, and labor [spent] getting products into the ground, out of the ground, and into market. So why not put the best possible protection around that product [so] that whatever you grow and ship makes it to the shelf?”

Studies have been universal in showing that RPCs extend the shelf life of produce because of better cold chain and better relative humidity.

“There’s also a lot of incremental higher value when you’re talking about premium-priced organic products,” Tate said. “Tha t’s where we feel we fit in really well in the organic space.”

On top of that, Tate noted that IFCO aligns well with the values and sustainability of those in the organic commodities.

Tate noted that the food-safety data and science applied to the program—for both organic and non-organic produce—is top-notch.

“Our passion and commitment to sustainability is similar to those who want to do something organically and value that in their operation,” he said.

Currently, IFCO partners with upwards of 25 retailers across North America, including Walmart, Kroger, and Loblaw in Canada.

“Those folks have all seen the value of our RPCs for a number of years,” Tate said. “There’s a lot of supply-chain savings and product-quality savings that they’ve all realized. The grower community knows those retailers have been open about their need for RPCs.”

“Our passion and commitment to sustainability is similar to those who want to do something organically and value that in their operation.” -Bryan Tate

Turning to its grower portfolio, Tate shared that when it comes to the large-scale growers, IFCO is either currently doing business with them or has done business with them at some point in the past. Among its customers are Braga Fresh and Bolthouse Carrots. 

But it’s not just the year-long players who the company does business with. “We’re also very proud of our seasonal, local grower program that we support when they come on line at the appropriate time,” Tate said. “For instance, we have an exciting group of small growers in Canada that come online each season for Loblaw, and it’s a fun window to take care of for them.”

The COVID-19 pandemic has made consumers more aware of the packaging their food is in, which has brought more focus to the importance of RPCs lately.

“There’s been a nice bump in overall produce consumption, which in turn bumps down to us, and things that have been washed and sanitized like an RPC start to resonate a little more,” Tate said. “So, that [gives our product] a higher value proposition.”

IFCO believes the opportunities for growth in the years ahead are immense, and organic remains a big focus of its growth path.

“The amount of awareness that the consumer is putting on everybody for sustainability has never been at a higher level,” Tate said. “We get excited about stuff like that because when the consumers start looking for it, it influences buyer decisions, and you see the traction in the industry.”