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Message: <blockquote data-quote="justkeepswimming" data-source="post: 149715" data-attributes="member: 25536">Testing my commercial awareness with a discovery I made today:[ATTACH=full]5266[/ATTACH] Balconi Snack (not sponsored)[ATTACH=full]5267[/ATTACH] ALL IMAGES ARE FROM GOOGLE and are just to help your understanding of the story.An hour ago, I got up for a quick snack (a Balconi latte bar) and discovered that where they usually have a mini cardboard tray, it was no longer there. I had eaten a box (don't judge) in March of this year which had a cardboard tray holding the cake inside the plastic packaging (the second picture shows what it usually looks like). Now no cardboard. Intrigued by this change, I decided to use this as a case study and test out my commercial awareness skills.I googled my observation and found a statement from the company, Valeo Foods Italy, stating that they were going to reduce their packaging usage, which would save 8,500 trees and 250 million litres of water annually. While they have presented this change from an ESG perspective, there are a few other ways they may have benefitted:1) Cost reduction Unlike some other products, which suffer a whole production change when they switch to greener packaging eg by replacing a material, Balconi has simply removed one element of the package. The cardboard box was not part of the outer plastic packaging. They will have benefitted from the reduction in the cost of production after removing one step of the process.Secondly, the reduction in materials needed would have reduced production costs as well.Thirdly, reduction in transportation costs as one leg of the process has been cut out.2) Time efficient By removing one element of the package, they will have shortened the supply chain, reducing the time it takes to get the product to the customer. A shorter supply chain is both time-efficient and more secure. They can respond to changes in consumer demand or regulatory environment quicker. A shorter supply chain also reduces the risks one can face from supply chain problems.3) Likely to lead to improved inventory management as the materials needed have been reduced.4) Could fund future packaging changesThe statement also claimed that they will be working to reduce packaging further in the future. What is left of the package is the plastic wrapper, I am not sure how much further they can reduce that. They may look to switch out the material which may be costly, however, the cost-benefits of removing the cardboard tray may help balance out the costs generated by creating new packaging.5) Improved consumer perception Consumers will view this brand as trying to be environmentally friendly and those consumers who value this may be more inclined to shop from them.Interesting notes:One thing I would like to highlight is the announcement was from 2021, yet I experienced the change in September of 2023. This just shows the time it takes for a change to filter through the market and reach end-users.Another interesting thing that popped up during my research is that Valeo Food Group was acquired by Bain Capital for $1.5 billion in an auction in May 2021. Could the change of control have influenced this change?Moving towards sustainability is not a new trend. We are likely to see a lot of these changes across the market. Valeo Group will have to be cautious about the statements they make in regard to their green initiatives as such claims are being scrutinised by regulators.How law firms could help:CorporateThe supply change changes would have required contracts to be renegotiated. They would be reviewing contracts to see when and how the company can swiftly break away from all the suppliers involved in creating and supplying the cardboard packages.DisputesAny disputes that arise from these discussions may need the disputes team to resolve/negotiate.Real EstateIf any buildings, assets, equipment or fleets were involved in the process of this, the real estate team will be involved in reviewing those contracts to see how to handle, dispose of, or divest the company of these assets.Banking & Finance Financing future changes to the packaging would require assistance from banking & finance lawyersESG If a law firm has a dedicated department to ESG, the lawyers could be reviewing the environmental claims and ensuring there isn't a chance of greenwashing allegations to come from this.This was just an exercise to test my own commercial awareness, not promoting the brand or anything. Feel free to add anything.</blockquote>

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