-By Bridget Goldschmidt

Among the increasing numbers of eco-conscious shoppers, disposable paper plates, cups, and napkins aren't perceived as the greenest of products, since they're designed to be used once and thrown away.

But in a world where time is at a premium and convenience is everything, few consumers, even those genuinely interested in reducing their carbon footprint, will give up such products entirely.

Still, changing attitudes toward paper products are adding to the challenges faced by the industry, which is already grappling with higher prices and scarcer supplies as a result of such factors as ballooning energy costs.

Paying the price

"According to Nielsen all-outlet data, dollar share for the 24 weeks ending May 17, 2008 indicated that the plate and napkin categories were basically flat, while the cup category [was] down slightly vs. year-ago," notes Erik Sjogren, marketing director at Dixie, a division of Atlanta-based Georgia-Pacific.

"However," he’s quick to add, "Dixie branded plate growth outpaced the category during this time," despite "some general softness across our napkin and cup portfolios."

One big reason for this is vigorous marketing support, including "category-leading national advertising investment, as well as ongoing consumer promotions," says Sjogren. "In addition, we continue to pursue merchandising activities during key seasonal merchandising periods for the category."

Solo Cup Co. says it's also working hard to keep the category vibrant -- and value is proving a key touchpoint. "As we follow the trends, we’re seeing consumers moving from plastic to paper products," observes Kim Healy, v.p. of consumer marketing at Highland Park, Ill.-based Solo. "We believe a large factor in making the trade-offs is price."

To that end, "Solo continues to offer coupons delivered at checkout, on shelf, online, or in newspapers. These programs help consumers manage their budget while generating trial and repeat purchase for Solo brands," says Healy.

When it comes to paper goods prices, Batavia, Ill.-based limited-assortment retailer ALDI believes it has the competition beat. Ninety-five percent of the products the company carries are private label, including Larado paper plates and cups and Clarissa napkins.

"ALDI continues to offer the lowest market prices for the paper goods and fresh grocery items that customers purchase most frequently," explains company spokeswoman Martha Swaney. "While rising energy costs have affected all U.S. grocers, our unique approach helps us pass on savings to our customers and keep prices low."

The sustainability factor

With regard to the environment, an important way of putting worried shoppers at ease about their paper product consumption, while at the same time touting a company's corporate social responsibility, is to spotlight sustainability efforts.

"Through manufacturing, procurement, and logistics initiatives, we are using less energy and reducing our footprint on the planet," notes Solo's Healy. "In product development Solo has been researching and testing renewable, biodegradable, and recycled materials for well over a decade."

The company offers a line of environmentally focused products for foodservice settings that includes uncoated paper products and a paper hot cup containing 10 percent post-consumer recycled fiber, and is currently testing a line of similar items for retail, according to Healy.

Sustainability is a similarly high priority for Chinet, which is manufactured by De Soto, Kan.-based Huhtamaki Americas, Inc. Its Chinet Classic White and Chinet Casuals plate lines are made from 100 percent pre-consumer recycled material. Both lines are certified chlorine-free and are biodegradable for home composting.

Dixie's parent company, Georgia-Pacific, has also adopted such green initiatives as sustainable forestry.

At your convenience

The company concentrates mainly on the convenience aspect of its products, however, through merchandising and cross-promotion. "[W]e cross-promote our Dixie plates and napkins to provide a complete and convenient tableware solution to the consumer," explains Sjogren. "We also...partner with complementary brands/products that make our target consumers' lives a little easier -- from making coffee in the morning, to mealtimes with the family, to the oral care routine in the evening."

So, by placing such merits as sustainability, ease of use, healthfulness, and, of course, value front and center, manufacturers and retailers of paper products should be able to weather the current economic storm. ALDI's Swaney, for one, is optimistic about the category: "We see paper goods as a potential growth area for ALDI as shoppers continue to seek out products that provide convenience to help balance today's busy lifestyles."


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Eat and learn

When it comes to paper tableware, Solo Cup Co. provides convenience -- and then some.

"We respond to consumer lifestyle preferences, which include convenience, but also a desire for personalization and benefit beyond function," points out Kim Healy, v.p. of consumer marketing at Highland Park, Ill.-based Solo. "For instance, with our new Sesame Street product line, we are helping connect parents and children through interaction and learning at mealtime…. Some of the designs display 123s, ABCs, colors, and shapes, bringing an educational element to the table."

The packaging for the product line, which hit stores in June, includes a toll-free number and Web site that enable kids to interact with popular Muppet character Elmo.

Solo also offers convenience through its new 110-count heavy-duty paper plate offering, which allows consumers who need a large number of plates for a party or outdoor barbeque to pick them up right in the grocery aisle, rather than making an extra trip to a warehouse club store.