Viva Fresh 2024: Sev-Rend's Mark Hoppenjans on Innovative Packaging & Industry Trends

Join us for an engaging episode of The Fresh CrEd Podcast, recorded live at the 2024 Viva Fresh Expo in Houston, Texas! Dive into our conversation with Mark Hoppenjans from Sev-Rend as he discusses how their innovative packaging solutions are propelling the produce industry forward. In his first Viva Fresh appearance, Mark shares his insights on the significance of sustainable practices and the evolving dynamics of industry relationships.

What's Inside This Episode:

Discover the unique atmosphere and personal connections that define the Viva Fresh Expo.
Learn how Sev-Rend is leading the way in sustainable packaging and automation, directly impacting produce handling and customer engagement.
Explore the challenges and opportunities in implementing eco-friendly materials in packaging, from biodegradable options to advanced recycling practices.

We extend our gratitude to our partners Born Farms, Art MX, Mucci Farms, Sev-Rend, Santos International, 4Earth Farms, Sunfed, Zubelle Industries, IFCO, and our beverage sponsor, Tehuacán, for their invaluable support in making this event possible.

Tune in to gain valuable insights into the future of the produce industry and how innovation is driving growth. Don’t forget to like, subscribe, and comment with your thoughts or questions!

🔗 Useful Links:
https://www.sev-rend.com

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Transcript

Speaker 1: 0:00

Fresh Cred. This is Houston. You've been cleared for takeoff for Fred Expo 2024.

Speaker 3: 0:10

Nice and fresh miles now hola y bienvenidos al fresh craig I am excited to bring to you from the 2024 viva freg at houston, texas, in the beautiful marriott marquee brought to you by mr craig slate, ceo and president of sunfed, and joining him is his ever faithful partner in crime, mr ed burtada all right, so joining us now.

Speaker 1: 0:49

Our next guest is mark hoppin jens with severin mark, thank you for being with us. Thank you for the support, thank you for your partnership. Um, we've been yucking it up here for a bit before starting I think I feel like I've said a million words already, but there's a million more to be said, probably somewhere in there. So um mark is this. I didn't ask if this was your first viva show it is my first viva show.

Speaker 2: 1:12

Oh great, so well.

Speaker 1: 1:13

We have something definitely to talk about. We're just getting started. What do you think so far? I mean, it's a regional show. Um, I'm sure you've been to large expos in the past. You've been in the business. We'll get into that here in a minute, but so far so good.

Speaker 2: 1:27

I think a very personal show. People seem very comfortable. They want to talk about business, but they also want to enjoy themselves. But I think everybody's very accessible here and that's what I like about shows this size.

Speaker 1: 1:40

But I think they do a particularly good job here. I think a mix of the industry know, a mix of the industry, a mix of the format I think. I mean I saw people, you know, yesterday in the lobby. You know it was like a scene out of a movie, I mean people running to each other and hugging and yeah, like so excited you know. I mean there's just really great vibes. So, um, it's a very competitive business but there are definitely a lot of relationships. I mean now at this point I've there are folks like this guy over here that.

Speaker 1: 2:05

I've known for quite a number of years that, admittedly, if I didn't see him for a long time, I'd probably be excited to see him.

Speaker 2: 2:13

But I see him all the time. Yeah, no, I agree, I think in produce it is competitive, but it's kind of an all boats rise thing. I think, everybody wants to see everybody else do well and there is some best practices shared and a lot of overlap. So compete on business but at the same time you know well wishes for everybody.

Speaker 1: 2:32

Yeah, mark, you're with Severin. Can you tell us a little bit about Severin?

Speaker 2: 2:37

Sure.

Speaker 1: 2:38

I mean, let's start there and then we'll talk about some other dynamics.

Speaker 2: 2:41

as far as we're based out of southern Illinois, so the closest city would be St Louis. We're way down in the south part of the state from Chicago. We've been there about 30 years and the Williams family's been in packaging for over 100. Wow, we're kind of that boring Midwest company that doesn't have any debt on the financial side, but also very aggressive and ambitious with new materials and getting to know customers. I know we talked about HEB and really getting in to the innards of their business and making sure we're creating value and so we're growing. We're in Canada as well as Mexico and all over the country shipping a little bit outside. We're growing our team also, which is fortunate to have everybody here. But yeah, I think, just really wanting to grow within produce and wanting to innovate and willing to listen to customers on what they want, but at the same time really focusing on the consumer cost component, which we both know.

Speaker 4: 3:36

Produce is a big thing. How long have you been with them?

Speaker 2: 3:39

I've been with them a year but I've been adjacent to them for 17. They were a customer. I'd mentioned to you that I was in corrugated prior, so they used to be just three blocks from where I was located with the customer. So I remember when our new building was built here at Severn and and I'm from Belleville, which is adjacent to Collinsville, so actually when I'm back at headquarters I stay in the house I was raised in.

Speaker 2: 4:01

Wow and my mother and brother still brother still live there. So yeah, it's good, it's a good, soulful company and we do a lot of good things. That's cool.

Speaker 4: 4:08

Yeah, so where are you at now?

Speaker 2: 4:12

I'm based in California, so most of our focus is within the Midwest, there in southern Illinois, but we also have a presence in Phoenix and Atlanta and Indianapolis and northern California as well, and then I'm in the Palisades on the west side. But yeah, I mean we're all on the road a bunch and enjoying being in the fields and being in the packing houses.

Speaker 2: 4:33

That's the fun stuff. Well, most of what we do is for being in the field. No doubt you know most of our products go on automated machines. A very small percentage is hand-packed, so you want to make sure that it's packing quickly and the materials are working. The operators of all the machinery are kind of our biggest advocates. We also spend a lot of time in stores. The produce managers kind of tell us what the barometer is for our products.

Speaker 4: 4:59

What's your biggest commodity that you guys work with?

Speaker 2: 5:03

Okay, so our biggest product line is wine glass tags and then netting and film. So if you think of a bag of onions, you think of citrus, avocados, sweet potatoes and apples.

Speaker 2: 5:15

Those are the main commodities we're dealing with, and now you'll never pick up a bag of netting again, without having that warm feeling of the bass drum, right, um, but uh, like a warm blanket, that's right, um, we're. We're also in pouches, okay, uh, and we do form fill and seal. So if you think of, like a doritos bag coming together that actually starts in a roll and gets sealed, form filled and sealed, uh-huh, yeah, and so we also provide that film. But, uh, a lot around automation and you know automated solutions on the consumable side.

Speaker 4: 5:48

So so where do you, you know, with the packaging, just how do you see that world transition? It looks like. You know compostable seems to be a big thing. You know there's people wanting to reduce packaging. What kind of things are you guys doing along those lines? Or where do you see that piece, part of the business, going?

Speaker 2: 6:09

You know, I think everybody has had their moment with sustainability and trying to understand it, and that's really the biggest challenge is that sustainability is first confusing. And then what's the business case? And so you know, utilizing the materials we have, we are a plastics and flexible packaging company. We do have the solutions you mentioned biodegradable, compostable and we have different options in that space by all means. And we're very, very focused on all the retailer initiatives because ultimately, the retailers are driving packaging guidelines and specs. So I think we're looking for the balance point and, as sustainable materials are integrating themselves into the packaging supply and what their behavior is, end of life, what we're wanting to make sure is that the costs stay in line and that these are realistic things happening, because you know sustainability is going to happen gradually, not suddenly, because the consumer won't pay for suddenly, and that's where that business case comes in, and so we focus on that.

Speaker 4: 7:04

Do you have a sense as to what's gaining traction? I mean, is it the compostable, Is it the biodegradable, or is it just a sense of, you know, recycled plastics? Where do you see you know that going? Because, like you said, everybody's kind of trying to participate in that sustainable space. But for your industry and where you're at what do you feel like that? Maybe the future is?

Speaker 2: 7:27

Yeah, kevin. So the immediate post-consumer recycled content is very available. If you look at some of the main retailer guidelines for 2025, it's 20% post-consumer recycled, 15% reduction in virgin plastic, which those two cancel each other out, right? Yeah, you got 20% and you have to have the narrative to be able to tell the end of life story on what's the recycling rate, what's the recyclability of it, is it compostable? Is it biodegradable? So just the post-consumer recycled content and integrating that into the packaging. That's the most successful right now and that's staying under that three percent that the consumer will absorb it doesn't it'll only add maybe one or two percent the.

Speaker 2: 8:08

The challenge with compostable and biodegradable and completely natural materials is two-part. Number one they're not working as efficiently on the automation out there okay they're slowing down packing rates.

Speaker 2: 8:19

And then the second thing is they're typically two to five times more in cost. Yeah, so if you're looking at staying under that three percent, you can't really do that with that package. I love what I'm seeing. There's a lot of great stuff coming out of Austria and Germany. I'm a paper guy. As we talked about. We are about 12% of our total productions on the paper side. You know, for web-based, I think that there's a lot of a lot of promise there, but it has to be done in a gradual way to where there's enough scale, to where the material can get to the point where the end user can use it. So, or we'll pay for it. You, you were, you were gonna rephrase that anyway. Right, yeah, you had some. No, I have. No, you guys are covering a lot of us say you failed to send me.

Speaker 4: 9:00

You were going to rephrase that anyway. Right, yeah, you had some notes.

Speaker 1: 9:04

I have some notes. You guys are covering a lot of our notes. I was going to say you failed to send me the notes. Well, you know I like keeping you on the edge of your seat.

Speaker 2: 9:11

You seem to like an improv guy. You can't just choose when to and when?

Speaker 1: 9:15

not be prepared, Mark. So we're talking earlier about who does it right, who you think does it right out there as far as retail.

Speaker 2: 9:23

Not us.

Speaker 1: 9:23

From a retail perspective, who you're working with.

Speaker 4: 9:27

We're still talking about golf.

Speaker 1: 9:29

Yeah, we're back to golf. If you can share with us, I guess, best practices that you admire, or I say retail chains that are particularly keyed in or you feel like are on the cutting edge or have been Any examples to share with our listeners?

Speaker 2: 9:47

I think you'd kind of put that in three different categories. We have the group of grocers that are owned out of Europe. If you think of a whole Dale Hayes. Or if you think of Aldi. They've been driving the whole thing right, the teams here in a whole Dale Hayes' case, 70% of the revenue that is generated globally, even though they're out of the Netherlands, comes from the US. So Say that again, 70% of the revenue for a whole Delhaize, which is a grocery company, yeah, no, I know I'm very familiar with the company.

Speaker 2: 10:17

I didn't realize 70% of the revenue is really Right.

Speaker 4: 10:20

Wow, that's amazing.

Speaker 1: 10:21

And my reference was when we talk about reusables. They started in Europe, right? So that's what I was referring to.

Speaker 2: 10:29

So in situations like that, then the packaging guidelines and the reporting elements just like accounting or anything else for sustainable options, have to comply with the EU, which is a higher grade. So you have that group. Then you have the middle group, which is kind of the publicly traded groups like walmart and costco and others, and with sec guidelines for sustainability they have to kind of focus on that so they get a little bit more aligned with carbon reporting. And then the waste reporting which comes into ours, okay, and then you have more of the regional and privately held which we're familiar with. So, if you know, if you look at companies like H-E-B, which is more regional, even Sprouts, which is a regional, but they're smaller, you just tend to have a little bit more control over their supply chain and a little bit more community and personalized sustainability, sustainability. So I think you know those that I mentioned and you know HEB here locally, certainly they are using sustainability and circular practices to really connect with their customers and they, for example, they have plastic reclaim.

Speaker 2: 11:34

You know right on site, where you can bring your bags back or you can bring any plastics into their operations that you're not sure if they're recyclable or not and they'll go ahead and take care of it and figure it out for you. So you know, I think when you think about that chasing arrows that we talk about with recyclability and everything I you know, I think they've probably taken a step ahead of everybody for closing the loop, if you will, and kind of doing what they say.

Speaker 4: 11:58

I talk, you know, on a kind of on that subject, but an example of closing that loop because I think that's the key on the reusable or recyclable piece of it, right, is you got to make it as simple as possible for the consumer, right, and kind of take that out of a chat, you know, where they don't have to do anything, because not only that, it's like even when people separate it at their house you know what happened to it.

Speaker 4: 12:25

When it leaves the curb. When it leaves the curb is still some question, but in espresso, and if you're familiar with the coffee pod, it's your espresso.

Speaker 4: 12:31

So I'm an addict for the Nespresso's. But they have a system which I think is genius. So the Nespresso, they do this UPS bag, okay. So you get that free from them and when you've done with your pods, then throwing them in the trash, fill up the ups and sell it, throw it in the mailbox, it goes somewhere. Yeah, I'm assuming it goes back to them, they get it used, but to me it's like I use it. Yeah, you know, and I feel actually like I maybe am doing something, sure. So yeah, I don't know, but I mean just kind of dovetailing on what you were talking about, I think I think retailers that provide those bag returns or some type of recyclability. I think it goes a long ways to actually making it effective.

Speaker 2: 13:10

No doubt, and I think the folks that are really going to win with sustainability, not just on the packaging side, but on the retail side they're going to use it for customer loyalty right. They're going to identify that this aligns with their values. They want to see the data and the narrative. Yeah, they want to see both. They want to know that when they stay in that QR code and it tells the end-of-life story or it tells the story you know, like that was a great example with UPS and the returnables, that, okay, you know that's worth my dollars, right?

Speaker 2: 13:36

yeah, this, this is aligning with me and you know, I think the younger consumer really desires to have that. They want to know that complete circle.

Speaker 1: 13:46

So in the commercial or sales perspective you're dealing with retailers and suppliers or producers both Right.

Speaker 2: 13:53

So from a design perspective, so as far as selling, if you think of packing houses and farms and marketing groups that are focused within produce, those are most of our end-use customers. Okay, marketing groups that are focused within produce.

Speaker 1: 14:02

those are most of our end use customers.

Speaker 2: 14:03

Okay, we do have direct retail relationships, where they come to us and they create the graphics and they create the specs and then agree to pricing and then are sold to is still the same.

Speaker 4: 14:14

So, okay, a retailer is never a direct customer unless they're shepherding a program for their own private label which is a relatively small amount yeah so curious, you curious, you know, I've read, I've seen, you know, since the pandemic, kind of a move from fresh produce, there's been some greater adoption in the packaging world. Right, fresh produce moving to packaging One, do you see some sort of? I mean, I know the trends with packaged salads and I know some of the obvious trends, but I'm just curious, Is it a business that you see actually growing with more packaging? You know, be it bags, be it flow, wrap and that kind of stuff, do you see that as it's a great question and you know, at the end of the day, the fruit's got to look good.

Speaker 4: 15:00

Yeah, right, yeah for sure.

Speaker 2: 15:01

And the fruit itself in some cases looks good, and then the packaging has to enhance that, right, we've seen bulk programs and we've seen proposed bulk programs, and you know they have their place, but they also have their challenges. And we've even seen, you know, paper programs where you know the fruit's packaged in a certain way and we find being in plastics. You know, one of the best things is that it displays a fruit well, yeah, a pouch in plastics. You know one of the best things is is that it displays a fruit well, a pouch displays a fruit. Well, the netting that we were talking about with the onions, you know, you can look right through that and you can feel it, uh, and that really shows a lot.

Speaker 2: 15:33

So, to answer your question, I think that's only going to be more and more because, uh, the branding of fruit, if you will, which we are all seeing, um, that is also starting to connect with the consumer. Um, but we're in an age, you know, different than previous, where the, the immediate feedback and the habits of the consumer are coming in almost real time and we're all paying attention to it. So packaging allows you to alter that quickly, right, yeah, and to stay connected to your end user.

Speaker 4: 15:59

So, so I mean and the you mentioned data somewhat in what you were saying there so I would you know, with the packaging, the data, the creation of the data, is a lot more accurate than bulk produce, right? In other words, when you want to count on somebody to scan it or identify it when it's coming to a package, you've got a quick scan and it immediately gives you the data of what the consumer is buying. And then, obviously, they can follow back. Do you guys, as a company, do you guys use AI? Do you use a lot of data? Do you have any technologies that you're you're employing for efficiencies or for new developments or anything like that?

Speaker 2: 16:33

We're, you know we're growing with it to try to stay in touch with our customer base.

Speaker 2: 16:37

And you know really, whether you like it or not, you have to go compete in that world. Yeah, because your competitors are. So you know we want to stay as close as possible and we want to give our customers as much access as possible. So we have a portal system where they have complete visibility. You know we're a printing company too, because of the tags and labels and all the films. So to see all their order history, to see their current orders in-house, to see ship dates, so it's a nice dashboard system and certainly the data from the frequency of who's using that and what's happening.

Speaker 2: 17:13

That's really been our focal point. But I'll tell you we've got a great team. We spend a lot of time in the field, too, with the produce managers and you know there's the data. But, just like we're talking about, there's that tribal, you know, of stephanie and chelsea, who you know talked to us about our citrus bags and you know how they changed. And you know we use that data because if stephanie handles 10 000 of our bags in two weeks, she probably knows something about it um, so I don't think it's ever going to tell the whole story on our industry.

Speaker 2: 17:42

Uh, you still got to talk to each other, which thank god, because all three of us like talking right you know so a little bit about you, mark, and we've talked about your company and what you guys do.

Speaker 4: 17:52

But uh, and we know from earlier conversation, you're not a big golfer semi.

Speaker 1: 17:58

He's a semi-professional pickleball. That's what he's a big.

Speaker 4: 18:00

He's starting a pickleball. Is that a pickleball association or something you're kicking?

Speaker 1: 18:04

the a pickleball. Is that a Pickleball Association or something? You're kicking the American Pickleball?

Speaker 4: 18:06

Association of America. Champions of pickleball. What do you do in your free?

Speaker 2: 18:09

time Severn is working for a customer event. Yes, ah, with 32 pickleball teams, maybe 64. So, being that, we're located, pause.

Speaker 1: 18:17

This thing's just too loud to overcome with editing.

Speaker 3: 18:22

Jesus.

Speaker 4: 18:28

Thanks bro, jesus. Thanks bro. What are we at? On time, mason, we're up against.

Speaker 2: 18:34

Well, we good, yeah. So I think, I think the produce industry has done a great job of bringing everybody together, right, and you know, the obvious way is drinking, which you can see it on the bars right.

Speaker 1: 18:48

Never heard of that one.

Speaker 2: 18:50

And golf. Everybody knows that one right. And then we have podcasts, which you know have been just they're emerging. A great development for our industry and I think you know, have a lot of viewership. I mean, it's not just that the quality's there, but the following right yeah.

Speaker 2: 19:10

And that is not easy to build. So full respect for that. You know, I think we have good speakers at conferences. We had Bo Jackson at one which was fantastic, and I've seen a number of others even in the past year. Just really strong. But of course the emerging space here in bringing people together is pickleball right.

Speaker 4: 19:22

Oh, boy it just is.

Speaker 2: 19:23

I mean it's an addiction maybe greater than alcohol and golf. I mean people you know they put courts in their yard. I mean they buy nets.

Speaker 4: 19:33

I'm going to have to try it. There's a discussion at our office, so we've got a garage there, so we've already been pitching the idea. We're probably going to wind up putting a pickleball net inside the garage and you're going to settle all disputes, everything, right there, that seems fair. But tell us about this event. Everyone's putting on.

Speaker 2: 19:50

We're just planning it right now. We're planning it for the fall, which is a good time to come to St Louis. It's a little bit cooler.

Speaker 1: 19:54

It's in the ideation stage Is that what that's called.

Speaker 2: 19:57

I think. We want to be the produce pickleball Kings. They're exploring, that's right, gotcha, but I've got a great team that puts these things into effect quickly. But, Pickleball is a great game because anybody can play it and pick it up, and people like yourself are very competitive. I can tell you don't like to lose, but I remember the first time.

Speaker 1: 20:17

That's an understatement.

Speaker 2: 20:18

The first time I played, I was watching these two 70-year-old ladies play against these two college kids who were 20. And the college kids were fit, great athletes, right yeah. And these two 70-year-old ladies just sat there, sat there and it was 11-1. Really Methodically and you had these guys running all over like Scooby-Doo, because they were athletes right.

Speaker 2: 20:39

And that's kind of the brilliance of pickleball is you can have a lot of different tools and you of pickleball is you can have a lot of different tools and you can still be successful at that game. And so we're having a good time with it and we want to grow with it and sounds like we're all right, I'm in, exactly you got.

Speaker 4: 20:50

You got a thing for sure I'm intrigued now sound yeah, okay, ed's got to get get his game on. He, he's got to get uh I'll try it get.

Speaker 1: 20:59

Get a little bit anything a little bit over his hunting addiction.

Speaker 4: 21:02

Yeah, you know, and put a few of those things aside, why is there nothing to get over?

Speaker 2: 21:05

I'll say, ed, as soon as you lose your first pickleball game, you'll be addicted. I highly doubt it.

Speaker 4: 21:10

Once you get pickled, you really will be addicted because you never want that to happen again.

Speaker 1: 21:17

I'm a good loser. Oh A boo, You're a good liar too.

Speaker 4: 21:22

He's not a good liar None, oh my gosh, You're a good liar too. He is. He's not a good liar. None of these things is he good at I don't know.

Speaker 1: 21:26

Self-awareness lacks there.

Speaker 4: 21:28

So I'm going to talk to Callie when I see her again, callie's my wife.

Speaker 1: 21:33

Yeah, she won't tell you anything.

Speaker 4: 21:35

Oh, she won't need to tell me anything, I'll just console her.

Speaker 2: 21:39

She's a 51% yeah.

Speaker 4: 21:42

So well, look, I think we're up against time and it's been a great conversation. We really appreciate you know, you guys? I feel, like it could go on forever. It probably could most of the time. You and I could talk forever, because we've proven that.

Speaker 1: 21:56

So when are you going to be next show-wise.

Speaker 2: 21:59

Trade show. I'm at CPMA, cpma, I'll be in Toronto. We gotta try to do CPMA next year. I'm in Toronto all next week.

Speaker 1: 22:05

I was gonna say that's next week. Oh, I know it's not gonna work for us this year it's the week after next

Speaker 2: 22:09

it's in Vancouver. It's not in Vancouver too often, so I think it's a little bit smaller show when it's there.

Speaker 1: 22:15

We're shooting for Berlin next year.

Speaker 2: 22:17

Are you?

Speaker 1: 22:19

I think everybody shoots for that. But I mean doing this in Berlin, We'll be there.

Speaker 2: 22:24

Yeah, all right, we go every other year, okay, okay.

Speaker 1: 22:28

Awesome. Well, enjoy the rest of your week. Thank you for your partnership. Thank you for being here. I definitely I'm pretty confident that we'll have continued conversations, but hopefully you enjoy the show and see the value in Viva Fresh and come back with us next year Are you exhibiting we? Are Well, hey, you've already won. The waiting list is long and I've seen it.

Speaker 2: 23:02

So our marketing person, brittany Hammack, would drive through any wall to get us a booth. I have no doubt that she put in the work to get it done. If you've not been to, Viva La Fresh.

Speaker 1: 23:07

You will know that we're considered. I say we, mark and I. Our company is Allied Industry. We're considered Allied Industry and there are very few Allied Industry folks in there, because it is a smaller show and, at the end of the day, we need to have plenty of product there. We have a lot of retail buyers and food service buyers here. So, yeah, that's just the end of the day. We need to have plenty of product there. We have a lot of retail buyers and food service buyers here. So, yeah, that's just the nature of the business.

Speaker 2: 23:30

Indeed, we're excited. We're growing in the industry and investing in the right things, and I'm very excited about my team. We've got some new players that have been great and brought new things to us.

Speaker 1: 23:42

It's a good place to be.

Speaker 4: 23:44

Yeah, I stay out of their way. All right, mark. Well, thank you again very much and best of luck. Uh here this week and uh and look forward to seeing you again, hopefully at uh in berlin, kevin, thank you, all right, thank you.