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Libbey Glass Initiatives : Sourcing Libbey Lids in China

by

Josh Gardner

I got an interesting call last week from our Libbey rep informing us that ARC International decided to source all large flat glass lids in China and that they had been in contact with the same plant. After much deliberation, I realized that Libbey needed to go overseas to realize a savings of about $0.15 per lid and to remain competitive with ARC – one of their top competitors. Given the economy, we at The Jar Store understood Libbey’s need to take advantage of obvious cost saving opportunities.

Our Libbey rep informed us that ARC will no longer manufacture large glass flat lids in France. The French lids are superb: quality, clarity, fitments and consistency outstanding. They sparkle on store shelves and match the standards that typify Libbey’s effort to be the premier North American glassware maker. I asked for a case of the China lids to see what they were looking at potentially sourcing in China and what kind of quality they could purchase.What I found upon receipt was typical of corporate efforts to navigate the complex Chinese marketplace: ARC didn’t put in the time and systems required to be effective at managing outcomes. After inspecting an entire case of ARC-style lids made in China (72 random pieces) and testing them on a random Libbey 18 oz Whisper Jar using a straight visual quality comparison to the Libbey Crisa lids from Mexico, I discovered: Color doesn’t match Libbey’s Mexican material. There is a slight tinge that is common with China product due to the percentage of recycled material. Fitments are poorly constructed to compensate for variance in opening diameters. There is only one fin in an odd position that does not support a “tight” seal. As a result, 40% of the lids fit “loose” on jar bottoms. Because of this, I would reject ARC-China lids due to a compliance issue with industrial fillers. Flame polishing is mediocre. I see cloudy centers, mold lines and a matt finish. No real sparkle. The clarity is just not there and additional flame polishing is required to reach a viable market presence beyond discount store offerings. Bubbles, marks, and pits evident. Should be rejected prior to export. Corrugated boxes are awful. They could have done a much better job here. The net result is that the cartons are unusable except on pallets. Dust on a good portion of lids. This means that some cleaning will be required.Interestingly enough, I decided it was time to revisit our competitive advantage and retake market share. Knowing full well that The Jar Store’s China lids are equivalent in quality to American made lids and that ARC had already made the switch, we are officially headed back to our Chinese plants to manufacture the most beautiful flat glass lids ever produced in Mainland China. By the end of July, we will be fully stocked with super high quality, low cost lids to help our customers compete while still aintaining adequate stock of Libbey’s high end Crisa products. As the saying goes, if you can’t beat um’, join um’!

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Libbey Glass Initiatives : Sourcing Libbey Lids in China}