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February 8, 2008

Firm hopes packaging goes green

Puffy Stuff plans to sell 100-percent recyclable packaging peanuts
Nashville Business Journal - by Jim Stinson Nashville Business Journal

Todd Stringer, Nashville Business Journal
Rod Atkins, Puffy Stuff VP, and Southeast sales manager Donovan Damme

An East Nashville company is seeking to grab hold of a share of the $5 billion packaging material market by selling fully recyclable shipping peanuts.

Rod Atkins, vice president of Puffy Stuff, a soon-to-be formed LLC, says his company will sell 100-percent recyclable "loose fill," or packaging peanuts.

Atkins and business partner Cheryl Riddle have invested $250,000 and have already lined up customers.

Mostly made of grain sorghum, or milo, the three-ingredient peanuts dissolve quickly and harmlessly, Atkins says.

Grain sorghum is a cereal crop. Atkins says his green peanuts are a cheaper and more environmentally friendly alternative to expanded polystyrene (also known as EPS), which is used in many non-paper packaging goods.

Expanded polystyrene contains petrochemicals, which makes it subject to oil-price volatility, he says.

That's one of the reasons Boxes Etc. of Nashville bought a trailer full of the green peanuts, says Bob Frye, co-owner and sales manager of the wholesale packaging-supply company.

Frye says his customers include UPS and PakMail, and orders have been steady for packaging peanuts, which do a better job than paper or airpillows at keeping products in place during shipping.

Frye wanted to use something biodegradable which could break down harmlessly in landfills if thrown away.

"We are committed to the idea," says Frye. "I have some customers who use trailer loads."

Frye says the idea of a biodegradable packing peanuts has been around for years, but the issue has been price. That issue has diminished as many businesses go green.

"The bottom line is costs," says Frye. "We've already made some converts."

Atkins says the manufacturing costs for the green peanuts are now down to under $1 per cubic foot. The product sells for between 65 cents to $1.50 per cubic foot.

The milo peanut is edible and won't attract rodents, Atkins says, because the food component has been stripped out. The peanut has a slight popcorn scent, although it does not pass off scent to the packaged goods.

Atkins and his partner mapped out their vision eight months ago.

Atkins says his company, made up of 14 manufacturers and salespeople, is eyeing the Southeast market first.

Then the company would like to expand into the Northeast.

But he hopes it won't stop there.

The milo grain has other industrial uses, although Atkins is mum on particular competitive breakthroughs.

"As we invent things there's many other industries we could bleed into," Atkins says.

jstinson@bizjournals.com, 615-846-4254

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