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Varcode, NPG To Develop SMART Packaging Solutions


Chicago-based Varcode has finalized a partnership agreement with National Packaging Group to develop, manufacture, market and distribute SMART packaging solutions for distributing temperature-sensitive products.

Under the agreement, New York-based NPG will integrate Varcode’s patented Smart Tag technology with its manufacturing businesses. This will create a single source for digitally enabled packaging solutions capable of improving cold chain for food and pharma products, brand reputations and consumer experiences, while minimizing product waste and improving margins.

The agreement also calls for the two companies to coordinate sales of the technologically enhanced packaging products. NPG’s parent company, private equity firm Four M Commercial Operations, led Varcode’s recent equity investment round with a $3.5 million investment.

Varcode’s technology will empower NPG corrugated products to digitally track, analyze and report cumulative temperature excursions, producing a cost-effective, permanent digital record. The Varcode Smart Data Solution includes temperature-sensitive Smart Tags, a scanning suite to scan the tags and a management system, where data is permanently stored for customization and information analysis.

The Smart Tag temperature indicator labels record and report if the shipment experienced temperature abuse and the cumulative time of those variances. The solution also features binary indicators for minimum and maximum temperature as well as temperature ranges, all of which are digitalized with a simple scan.

“In recent years, Innovation in manufacturing, technology, and product development has been the cornerstone of our business strategy,” said Dennis Mehiel, chairman and CEO of NPG. “Varcode’s comprehensive offering of Smart Tags, Scanning Suite, and Management Suite technologies, combined with NPG’s advanced design and manufacturing capabilities, will enable our business-to-business and direct-to-consumer customers to improve their overall operations, reduce waste and increase revenues.”

Joseph Battoe, CEO of Varcode, added: “Both Varcode and NPG are committed to optimizing operational strategies for production, packaging, and supply chain for manufacturers, wholesalers and retailers of food products, pharmaceuticals and other time and temperature-sensitive product categories. This logical partnership immediately strengthens our abilities to deliver on those commitments with even greater efficiency, affordability and reliability for our customers.”  

NPG and Varcode will begin their partnership with the development and launch of two new product categories: corrugated SMART Cases for wholesale products stored and transported in temperature-controlled environments, including perishable food and drug products; and SMART Packaging Kits for online groceries, meal kits and pharmaceuticals delivered to consumers or point of care facilities in packaging conditions requiring insulation and coolant within the corrugated packaging.

For more information, visit varcode.com or nationalpkg.com.

To read more packaging news from The Shelby Report, click here.

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