News | June 25, 2013

Perrigo Nutritionals And Tyco Integrated Security Introduce Anti-Theft Infant Formula Packaging For The Kroger Co

Perrigo’s SmarTub packaging design aims to improve ease-of-use and reduce theft of infant formula

Tyco Integrated Security (TycoIS), a Tyco (TYC) company and the industry’s leading security systems integrator, has teamed up with Perrigo Nutritionals to develop a theft-resistant infant formula container. Perrigo Nutritionals is the leading infant formula company that supplies mass retailers, grocers and drugstores with their own Store Brand Infant Formulas. Baby formula frequently tops the list as one of the most commonly stolen products, and according to last year’s National Retail Security Survey results conducted by the University of Florida, the supermarket and grocery industry had the highest total shrinkage percentages of all retail segments.

In order to combat high theft numbers and prevent losses, Perrigo Nutritionals invested significant resources in developing the SmarTub packaging to aid retailers in reducing the costs of theft associated with infant formula. The SmarTub includes a Sensormatic Acousto-Magnetic Electronic Article Surveillance (EAS) tag that resonates when placed in an electromagnetic field, alerting the retail store’s staff of the theft. 

"We worked with Tyco Integrated Security to update our packaging in order to help our customers better prevent infant formula theft in their stores," said Perrigo Nutritionals General Manager Scott Jamison. "Our team invested $29M and three years of development work into this effort to better serve our customers, and the result is an innovative, theft-resistant package on the outside with the same trusted formula on the inside."

“This is the first infant formula package on the market that is compatible with our EAS tag and designed to significantly reduce shrinkage for retailers across the country that sell Perrigo baby formula,” said Mike Creedon, Vice President of Retail Sales and Operations for Tyco Integrated Security. “By tagging the product right at the point of manufacture, our customers can be sure their product is protected from step one. We make it a top priority to aid our partners and customers in reducing shrinkage to more effectively increase profits, and our involvement in Perrigo’s development of the SmarTub has done just that.”

“We have been attempting to have infant formula source tagged for many years and have finally demonstrated through the partnership we have with our private label brand that it can be done,” said Karl Langhorst, Corporate Director of Loss Prevention, The Kroger Co. “Our desire would be for the national brands to follow suit. Tagging compliance and labor savings through Source Tagging is critical to our program’s success, but more importantly, it helps us maintain in stock availability, which improves the shopping experience for our customer.”

About Tyco
Tyco is the world’s largest pure-play fire protection and security company. Tyco provides more than three million customers around the globe with the latest fire protection and security products and services. A company with $10+ B in revenue, Tyco has more than 70,000 employees in more than 1,000 locations across 50 countries serving various end markets, including commercial, institutional, governmental, retail, industrial, energy, residential and small business. For more information, visit www.tyco.com.

About Tyco Integrated Security  
A business unit of Tyco International Ltd., Tyco Integrated Security is North America’s leading commercial security systems integrator, providing security and business optimization services to more than 500,000 customers. Headquartered in Boca Raton, Fla., Tyco Integrated Security has more than 10,000 employees throughout North America. For more information, visit www.TycoIS.com.

About Perrigo Nutritionals
From its beginnings as a packager of generic home remedies in 1887, Allegan, Michigan-based Perrigo Company has grown to become a leading global provider of quality, affordable healthcare products. Perrigo develops, manufactures and distributes over-the-counter (OTC) and generic prescription (Rx) pharmaceuticals, infant formulas, nutritional products, dietary supplements and active pharmaceutical ingredients (API). The Company is the world's largest manufacturer of OTC pharmaceutical products for the store brand market. The Company's primary markets and locations of logistics operations have evolved over the years to include the United States, Israel, Mexico, the United Kingdom, India, China and Australia. For more information, visit http://www.perrigo.com, http://www.storebrandformula.com and http://www.perrigonutritionals.com.

About The Kroger Company
Kroger, one of the world's largest retailers, employs 343,000 associates who serve customers in 2,424 supermarkets and multi-department stores in 31 states under two dozen local banner names including Kroger, City Market, Dillons, Jay C, Food 4 Less, Fred Meyer, Fry's, King Soopers, QFC, Ralphs and Smith's. The company also operates 786 convenience stores, 328 fine jewelry stores, 1,169 supermarket fuel centers and 37 food processing plants in the U.S. Recognized by Forbes as the most generous company in America, Kroger supports hunger relief, breast cancer awareness, the military and their families, and more than 30,000 schools and grassroots organizations. Kroger contributes food and funds equal to 160 million meals a year through more than 80 Feeding America food bank partners. A leader in supplier diversity, Kroger is a proud member of the Billion Dollar Roundtable and the U.S. Hispanic Chamber's Million Dollar Club.  For more information, visit www.thekrogerco.com.

Source: Tyco Integrated Security