Pallet Rental News Roundup
By Rick LeBlanc
Date Posted: 4/27/2009
PepsiCo’s Quaker, Gatorade and Tropicana business units have announced plans to switch to plastic pallets from Intelligent Global Pooling Systems (iGPS). They are eliminating wooden pallets in favor of plastic over the next few months.
Pepsi officials notified suppliers in a recent letter. The company stated, “Since June 2007, iGPS has been utilized to ship many of the Gatorade, Propel and Quaker Foods SKUs on iGPS’ new plastic pooled pallet. This change is addressing shipping platform quality concerns and reflects our desire to be responsible stewards of the environment (this pallet is 100% recyclable).”
Citing progress by iGPS on the fire issue, Pepsi is moving beyond initial trials. The new iGPS pallet design is treated with a fire retardant and has been certified under UL 2335 and FM 4996.
As of April 1, 2009, the Quaker and Gatorade business units will begin integrating iGPS pallets completely across all SKUs into their networks, with the expectation of shipping exclusively on the iGPS platform as soon as all inventory on wood pallets turns. The Tropicana chilled business will convert beginning May 1, 2009.
Pepsi pointed to uniformity and product damage when explaining its move away from wood. Pepsi stated, “The iGPS pallet is more uniform in size (48x40) and is significantly more durable and hygienic than the typical multi-use wood pallet. The composition of the plastic pallet will improve the level of product integrity and will increase durability while reducing susceptibility to damage.”
Besides Pepsi brands, iGPS is close to major new business with General Mills. iGPS has announced that it has finalized a pilot test in its Roanoke, Texas distribution facility and will be expanding the use of iGPS pallets. Beginning in June, General Mills will transition more of its retail dry temperature sites to the iGPS pallet platform.
In other rental news, CHEP, the largest private pallet rental company in the country, has made some customer wins over the past month. CHEP recently announced an expansion of business with Backyard Farms LLC, the largest New England greenhouse grower of vine-ripened tomatoes. It switched part of its business from white wood pallets in 2006. CHEP has also renewed its contract with Leger & Son, Inc., a major producer of watermelons located in Georgia.
