Chep USA launches returnable produce container pool.

ORLANDO, Fla.--(BUSINESS WIRE)--Oct. 11, 1996--Chep USA has announced it will form a returnable container pool for the North American produce industry, featuring an innovative collapsible container. The new effort will focus on fruits and vegetables grown and sold within the United States, Canada and Mexico.

The transport of produce from the fields to the retail shelf has long been a challenge for grower/shippers and receivers alike, wrought with inefficient practices and excessive solid waste from packaging and damaged product. Chep USA's Returnable Produce Container pool addresses many of the handling issues facing the produce industry, including pre-cooling, trailer utilization, loading and unloading productivity and product damage.

"We know there is a need for a pool of strong, efficient and cost effective containers for the produce trade in US, Canada and Mexico, and we feel our offering provides both the grower/shipper and the receiver with the optimal mix of benefits," said Bob Moore, President and CEO, Chep USA.

"Within a few months, managers in the produce trade who aren't fully knowledgeable of Chep USA will come to know a new way of doing business that provides benefits to both sides of the produce marketing equation without high costs or large capital investments. Those customers who know us for our value-added pallet pool will see how well the returnable container pool works with our existing business."

The Returnable Produce Container is straight sided and collapsible. It was developed in conjunction with the University of Laval, Quebec, Canada, recognized around the world for its work in produce transportation and storage.

A field testing of the Chep USA Returnable Produce Container along with a corrugated cardboard container and three other commonly used plastic produce containers was recently completed in Canada and showed favorable results. The Chep container either equaled or out performed all of the other containers in the trial. Of special interest was the container's pre-cooling efficiency. In trials of forced air cooling, produce in the Chep Returnable Produce Container was lowered to the desired temperature in one-half hour compared to one hour for the cardboard container and two hours for one of the other plastic containers.

Other advantages of the Returnable Produce Container include its collapsibility allowing 210 collapsed containers to be stacked on a pallet, as compared to a maximum of 180 for nestable containers. All four proposed sizes of container have an identical footprint of 16"x24", and the heights are 4.5" (half bushel), 7.5" (one bushel), 10.5" (one 1/2 bushels) and 13.0" (two bushels).

The base of the Chep USA Returnable Produce Container is specifically designed not to collect dirt from the field, and the size and dimensions of the cooling vents are critical to minimizing product damage during transport. Laboratory trials confirmed that produce shipped in the Chep USA container is in significantly better condition than produce shipped in other containers tested.

"Chep USA Returnable Produce Containers are engineered to provide growers and receivers with the easiest and most cost effective way to get produce from the fields to the supermarket shelf or into the back of the restaurant," said Jonathan Mitchell, Vice President -- Returnable Produce Containers, Chep USA.

"The potential benefit to the entire produce supply chain is enormous."

According to Mitchell, the general benefits derived from the Returnable Produce Container program include the elimination of corrugated and related costs, reduced damage and enhanced pre-cooling, longer shelf-life, distribution efficiencies and modularity and standardization. In terms of pre-cooling, the reusable container was designed to accommodate the four major chilling methods: ice slurry injection and top icing, hydra cooling, forced-air cooling and vacuum cooling.

For grower/shippers and packers, the Returnable Produce Container brings savings in storage fees and space (no need to stockpile containers), elimination of the systems costs of corrugated cartons and reduced product damage. For receivers, Returnable Produce Container yields improved produce quality, reduced handling costs, reduced recycling and disposal costs and improved environmental image.

Chep USA operates a national pallet rental company servicing grocery and foodservice manufacturers and distributors, mass merchandisers, warehouse clubs, and the produce and frozen food sectors with high quality pallets from a depot network with more than 200 locations. Chep USA service now spans the U. S., Canada and Mexico, and is part of the worldwide CHEP organization, which operates in 16 countries on five continents and controls more than 66 million pallets. Chep USA's operating principles, service organization and computer tracking systems give participants a simple solution to and improved efficiency in product delivery.

CONTACT: Chep USA

Gary Garkowski

Vice President, Marketing

800/CHEP-USA (243-7872)

or

RAM Communications

Ronald Margulis

Managing Director

908/232-3230