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12/1/2009 1 State of the Flexible State of the Flexible Packaging Industry Packaging Industry a U.S. Perspective a U.S. Perspective Nov 2009 Nov 2009 Bruce Foster Bruce Foster Bruce Foster Mica Corporation Mica Corporation Mica Corporation
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Page 1: Flexible packaging presentation_dec2013

12/1/2009 1

State of the Flexible State of the Flexible Packaging Industry Packaging Industry a U.S. Perspectivea U.S. Perspective

Nov 2009Nov 2009Bruce FosterBruce FosterBruce FosterMica CorporationMica CorporationMica Corporation

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12/1/2009 2

Introduction

� What is the state of U.S. flexible packaging today?

� What are the drivers for change in this industry?

� What can we expect in the future?

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12/1/2009 3

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US Plastics Industry - Facts� 3rd Largest Industry in the USA� Employment – about 1.1 million workers� Turnover – About $380 billion/annum� US Factories – About 18,000 in 2008� Trade Surplus – About $11 billion in 2008� Location – Some presence in Every US State� Average Growth – 3.4% / per year� Productivity – Average 2.3%/year since 1980

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12/1/2009 10

Flexible Packaging Segment

� Flexible packaging ~ $26 billion / year� ~400 flexible packaging factories in U.S.� Flexible packaging continues to grow at the

annual rate of ~3%� Growth is linked to:� 1 Opportunity based on retail factors� 2 Opportunity based on environmental factors

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12/1/2009 11

Packaging by Market Area:

Medical

Industrial

Misc Retail Food

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12/1/2009 12

Mica Customers Consumption - 2009 vs. 2008

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

450.0

500.0

L1 M1 M2 M3 M4 S1 S2 S3Customer Size Category: Large / Medium / Small

MT

/ Yea

r

2008 2009

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12/1/2009 13

Flexible Packaging Segment

� Flexible packaging ~ $26 billion / year� ~400 flexible packaging factories in U.S.� Flexible packaging continues to grow at the

annual rate of ~3%� Growth is linked to:� 1 Opportunity based on retail factors� 2 Opportunity based on environmental factors

Page 11: Flexible packaging presentation_dec2013

12/1/2009 14

Opportunity Based On Retail Factors:

� Areas with good growth potential� Lidding� Pouches� Stand-Up Pouches� Re-tort packaging� “Smart” packaging

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Opportunity Based on Environmental Factors….

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12/1/2009 20

Changes Related to Environmental Factors� More solvent-free adhesive laminators� More 100% solvent-free printing operations

(via water-based inks or UV-cure inks)� Growing use of biodegradable polymers

(example: PLA)

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12/1/2009 21

Sustainability – the Wal-Mart Factor

In October 2005 Wal-Mart’s CEO, Lee Scott, publicly announced theincreasing importance of sustainability to the company’s corporate andcompetitive strategy in a speech titled “21st Century Leadership”.

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12/1/2009 22

The Sustainability initiative focuses onthree core areas:

Energy effectiveness

Waste reduction

Promotion of environmentally preferable products

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12/1/2009 23

The Sustainability initiative focuses onthree core areas:

Energy effectiveness

Waste reduction

Promotion of environmentally preferable products

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12/1/2009 24

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12/1/2009 *Packaging Digest, 13 July 2009 25

Growth of “Sustainable Packaging”to outpace overall packaging industry*

� DuPont estimates ~25% growth/annum

� Pike Research estimates growth from 21% to 32% of all flexible packaging in next 5 years

� 1/3 of consumers say they will purchase “green”, if given choice

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12/1/2009 26

Perception vs. Facts

� Public Perception: Paper is more environmentally friendly than plastics

� Facts:� Paper making requires 2x – 3x more energy per

ton vs. plastics production.� Plastics are only ~6% of US landfill waste� US Producers save 58 million barrels of oil/year

by choosing plastics over alternative packaging materials.

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12/1/2009 27

How to Change Public Perception?

� Education (Example: SPI’s “PlastiVan” programs)

� Responsible management� Infrastructure for collection, recycling, proper

disposal (incineration).

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12/1/2009 28

Summary

� US Flexible Packaging Industry Remains Healthy

� Consumer demands driving changes(“fast-fresh”, more choices on portion sizes)

� Wal-Mart “Sustainability” Program is driving changes

� More Consumer Education Needed

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12/1/2009 29

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12/1/2009 33

Where to Get More Information� Statisitics Obtained through:� SPI (www.plasticsindustry.org)� Flexible Packaging Association

(FPA – www.flexpack.org)� U.S. Census Bureau

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Flexible Packaging:

Contributing to Sustainability Less Resources. Less Footprint. More Value.

© 2013 Flexible Packaging Association

Page 29: Flexible packaging presentation_dec2013

Introduction

During the early 1900s, as more Americans moved from the farm to

the city, food had to be shipped farther from its source and thus

had to stay edible for longer periods of time. Food and other

consumer products had to be protected throughout the chain of

distribution; from the farm or manufacturing plant to the warehouse

to the store to the home.

Today, less than 3% of Americans live and work on farms. However,

the fact that these few Americans can feed more than 300 million

Americans and millions more overseas is the result of the

successful development of distribution systems and packaging

necessary to avoid spoilage and waste.

The average grocery store contains more than 10,000 different

products, each with unique packaging requirements.

1

© 2013 Flexible Packaging Association Source: Flexible Packaging Association

Page 30: Flexible packaging presentation_dec2013

Reasons Why Packaging Matters!

• Packaging reduces municipal solid waste by preserving

products.

• Packaging reduces the costs of virtually all products by

reducing product damage.

• Packaging helps consumers make informed purchasing

decisions.

• Packaging delivers nutritious food and reduces food waste.

• Packaging protects against product tampering.

• Packaging provides convenience for product transportation and

use.

• Packaging is one key to eliminating starvation, malnutrition and

disease by preserving food and improving distribution.

• Packaging reduces diseases by reducing spoilage.

• Packaging gives us product choices we would not otherwise

have.

3

© 2013 Flexible Packaging Association Source: Institute of Packaging Professionals

Page 31: Flexible packaging presentation_dec2013

Flexible Packages

• Flexible packages have no shape of their own, and it can

change shape readily, compressing easily and requiring a

minimal amount of materials to manufacture.

• Flexible packaging materials are used to create a barrier

between the product and the environment. They are used to

seal in freshness and lock out potentially damaging

environmental elements, such as excess moisture, light, and

oxygen that could affect the quality and taste of food, or the

efficacy of medication.

4

© 2013 Flexible Packaging Association Source: Flexible Packaging Association

Page 32: Flexible packaging presentation_dec2013

Flexible Packaging.

Less Resources. Less Waste.

• Flexible Packaging typically uses less energy and less

materials.

• Flexible packaging creates less waste in the first place®

through source reduction.

• Source reduction is equivalent to minimal packaging – use of

the smallest amount of materials possible to package a

product.

• Flexible packaging represents only about 2% of municipal solid

waste.

5

© 2013 Flexible Packaging Association Source: Flexible Packaging Association

Page 33: Flexible packaging presentation_dec2013

Flexible Packaging Uses Less

Energy to Manufacture

drive to stores,

storage,

cooking, 30%

food production,

50%

transport &

retailing, 10%

packaging, 10%

Of total energy used in the food chain:

Source: “Packaging in Perspective” prepared by the Advisory Committee on Packaging (UK) 6

© 2013 Flexible Packaging Association

• 50% used in food production

• 10% on transport to stores

• 10% to make primary, secondary and tertiary packaging

• 30% is used by shoppers to drive to the shops and store and cook food

Page 34: Flexible packaging presentation_dec2013

Flexible Packaging Reduces

Food Spoilage & Waste

Shelf life extended from 3 days to

14+ days in store

Flexible Packaging Prolongs Shelf

Life: Identical bunches stored for 7

days

In-store waste reduced from 3% to under 1%

Source: Incpen

“Food waste has at least 10 times the environmental impact

of packaging waste and that’s before taking account of

the impact of methane from decayed food.”

7

© 2013 Flexible Packaging Association

Page 35: Flexible packaging presentation_dec2013

Flexible Packaging

Saves Transportation Miles

& Fuel Consumption

60 pounds of beverage

50 pounds of glass

6 pounds of Rigid PET

3 pounds of aluminum

1.5 pounds of Flexible plastic = = =

=

Sources: Dow Presentation; FPA Case Studies, 2009 8

© 2013 Flexible Packaging Association

Page 36: Flexible packaging presentation_dec2013

Lightweight Flexible Packaging

Improves Transportation Efficiency

• Reducing Fossil Fuel Consumption and CO2

emission

• Lessening Highway Wear/Tear and Congestion

26 Truckloads of Unfilled Glass Jars

One Truckload of Unfilled Plastics

Pouches

Less Fuel consumed & Less

emissions

= =

Source: DuPont Awards for Packaging Innovation

(Pasta Sauce Flexible Pouch Example)

9

© 2013 Flexible Packaging Association

Page 37: Flexible packaging presentation_dec2013

Flexible Packaging Sends LESS

to the Landfill even after Recycling Rates

are Considered

MSW Landfill per

100 g Product (g)

Beverage Packaging Example:

6.0

54.5

2.4

2.8

Sources: FPA Case Studies, 2009; EPA 2007 MSW Report

To

MSW

Landfill

65%

63%

51%

100%

Product

Weight

(g)

Package

Weight

(g)

Package

Wt per

100 g

Product

(g)

Recycle

Rate

Glass Bottle

& Metal Cap 236 198.4 83.9 35%

Plastic PET

bottle & Cap 236 22.7 9.6 37%

Aluminum

Can 236 11.3 4.7 49%

Flexible

Stand Up

Pouch 199 5.7 2.8 0%

10

© 2013 Flexible Packaging Association

Page 38: Flexible packaging presentation_dec2013

Beverage Packaging

Case Story

Beverage

Packaging

Product

Weight

Packaging

Weight

Product-to-

Packaging

Ratio

Packaging

Weight

per 100g

Product

MSW Landfill

per 100 g

Product*

Energy

Consumption

MJ/8 oz

Emissions

Kg CO2 e

/8 oz

Glass Bottle

& Metal Cap

8 ounces

(236 g) 198.4 g 1:1 83.9 g 54.5 g 3.36 0.29

Plastic PET Bottle

& Cap

8 ounces

(236 g) 22.7 g 10:1 9.6 g 6.0 g 3.00 0.18

Aluminum

Can

8 ounces

(236 g) 11.3 g 21:1 4.7 g 2.4 g 0.99 0.08

Stand-up Flexible

Pouch

6.75 ounces

(199 g) 5.7 g 35:1 2.8 g 2.8g 0.45 0.02

Product assumed to be water; *Recycling rates factored: U.S. EPA 2007 MSW Report. Cradle-to-grave life cycle energy consumption and CO2 emissions data developed for FPA by Battelle Memorial Institute. Packaging weight, product weight, and product-to-packaging ratio calculated by Packaging & Technology Integrated Solutions, LLC (PTIS)

11

© 2013 Flexible Packaging Association

Page 39: Flexible packaging presentation_dec2013

Conclusion

• Packaging is critical to modern lifestyle and

food safety.

• Flexible packaging generally saves more

resources than it consumes.

• Flexible packaging reduces waste to landfill

by preserving and protecting products until

they are consumed.

12

© 2013 Flexible Packaging Association

Source: Flexible Packaging Association

Page 40: Flexible packaging presentation_dec2013

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Page 42: Flexible packaging presentation_dec2013

Flexible Packaging Association971 Corporate Boulevard, Suite 403

Linthicum, MD 21090-2211(410) 694-0800 Fax: (410) 694-0900

www.flexpack.org© 2009 Flexible Packaging Association. All rights reserved.

Printed on 30% post-consumer recycled content paper.

Flexible PackagingLess Resources. Less Footprint.

More Value.

Third Edition

Flex

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Pac

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Page 43: Flexible packaging presentation_dec2013

Flexible PackagingLess Resources. Less Footprint. More Value.

FLEXIBLE PACKAGING OFFERS SIGNIFICANT VALUE

AND SUSTAINABILITY BENEFITS TO PRODUCT

MANUFACTURERS, RETAILERS, AND CONSUMERS.

ALTHOUGH THERE ARE MANY PACKAGING OPTIONS

AVAILABLE TO MEET VARIOUS PACKAGING DEMANDS,

FLEXIBLE PACKAGING OFFERS CONSIDERABLE

ADVANTAGES, WITH FEWER TRADE-OFFS.

FLEXIBLE PACKAGING REDUCES WASTE, ENERGY

USE, AND GREENHOUSE GAS EMISSIONS.

ADDITIONALLY, FLEXIBLE PACKAGING PROVIDES

MANY CONSUMER CONVENIENCES INCLUDING

EXTENDED SHELF LIFE, EASY STORAGE,

MICROWAVEABILITY, AND RESEALABILITY.

1 2

This brochure describes several FPA case studies of flexible

and alternative packaging systems. The studies identify trends

in packaging weight, product-to-package ratio, landfill discards,

energy consumption, and greenhouse gas emissions.

The data sources for the FPA case studies include:

• The FPA Sustainability Assessment of Flexible Packaging 2009

research report produced by Battelle Memorial Institute. Battelle

used a streamlined life cycle assessment (LCA) to identify

trends in energy consumption and greenhouse gas emissions.

• PE Americas analysis of readily available data. This PE

Americas analysis was not critically reviewed per ISO 14040

standards and represents the magnitude of the comparative

environmental profiles.

• Other data sources as footnoted.

The FPA case studies describe representative systems which

include plausible assumptions for other packages and therefore

may be generalized to discuss the advantages of flexible

packaging over alternative packaging.

Page 44: Flexible packaging presentation_dec2013

Beverage PackagingBeverages have typically been packaged in aluminum cans, glass,or plastic bottles. Stand-up flexible pouches are making inroads inpackaged juices and fruit drinks.

• The flexible beverage pouch consumes 1/2 the amount ofenergy compared to the closest alternative.

• The flexible beverage pouch generates 75% less emissionsthan the closest alternative.

• Stand-up flexible pouches significantly reduce greenhouse gases released and energy consumed during the transport ofunfilled packaging from packaging converter to filling operation.

Beverage Product Packaging Product-to- Packaging MSW Landfill Energy EmissionsPackaging Weight Weight Packaging Weight per per 100 g Consumption Kg CO2 e

Ratio 100 g Product Product* MJ/8 oz /8 oz

Glass Bottle 8 ounces 198.4 g 1:1 83.9 g 54.5 g 3.36 0.29& Metal Cap (236 g)

Plastic PET 8 ounces 22.7 g 10:1 9.6 g 6.0 g 3.00 0.18Bottle & Cap (236 g)

Aluminum 8 ounces 11.3 g 21:1 4.7 g 2.4 g 0.99 0.08Can (236 g)

Stand-up 6.75 ounces 5.7 g 35:1 2.8 g 2.8 g 0.45 0.02Flexible Pouch (199 g)

Product assumed to be water.*Recycling rates factored: U.S. EPA 2007 MSW Report.Packaging weight, product weight, and product-to-packaging ratio calculated byPackaging & Technology Integrated Solutions, LLC (PTIS). 43

Cradle-to-grave life cycle energy consumption and CO2 emissions data developed forthe FPA by Battelle Memorial Institute.

Page 45: Flexible packaging presentation_dec2013

Raisin Packaging• Stand-up flexible pouches are 37% less by weight compared

to bag-in-a-box packaging.

• Per 100 g of product, bag-in-a-box packaging producesapproximately 3 times more MSW than stand-up pouches.

• A flexible pouch consumes about 54% less energy overits life cycle than the next most efficient package.

• Energy consumption during transportation is significantlyless for flexible packaging than alternatives.

Raisin Product Packaging Product-to- Packaging MSW Landfill Energy EmissionsPackaging Weight Weight Packaging Weight per per 100 g Consumption Kg CO2 e

Ratio 100 g Product Product* MJ/24 oz /24 oz

Round Paperboard 24 ounces 39.69 g 17:1 5.83 g 5.83 g 2.16 0.13Canister with Plastic Lid (680 g)

Folding Carton with 12 ounces 22.68 g 15:1 6.67 g 4.87 g 1.95 0.16Inner Poly Bag (340 g)

Stand-up 24 ounces 11.34 g 60:1 1.66 g 1.66 g 1.06 0.05Flexible Pouch (680 g)

*Recycling rates factored: U.S. EPA 2007 MSW Report.

65

Cradle-to-grave life cycle energy consumption and CO2 emissions data developed forthe FPA by Battelle Memorial Institute. Packaging weight, product weight, and product-to-packaging ratio calculated by

Packaging & Technology Integrated Solutions, LLC (PTIS).

Page 46: Flexible packaging presentation_dec2013

Product weight assumption: 100 sheets of 24 lb 8.5” x 11” copy paper.U.S. EPA 2007 MSW Report.

Parcel MailerThere are two forms of mailers commonly used: recycledpaperboard and HDPE flexible pouches.

• The flexible pouch consumes approximately 1/3 theenergy of the alternative to produce, ship, and use.

• The flexible pouch generates approximately 1/2 theCO2 emissions of the alternative.

• Recycled paperboard mailers produce 7 times more landfillwaste by weight per 100 g of product than HDPE flexible pouch mailers (taking into consideration a 27.3% recovery rate of paperboard).

• The flexible pouch mailer uses 1/8 the amount of packagingper 100 g of product vs. the paperboard mailer.

Parcel Product Mailer Product-to- Mailer Weight Energy EmissionsMailer Weight Weight Mailer Ratio per 100 g Product Consumption Kg CO2 e

MJ/Mailer /Mailer

Recycled Paperboard 13.28 ounces 96.38 g 4:1 25.63 g 4.80 0.23Mailer (376 g)(100% recycled paperboard,35% post consumer recycled material)

HDPE Flexible 13.28 ounces 11.33 g 33:1 3.01 g 3.37 0.11Pouch Mailer (376 g)

87

Cradle-to-grave life cycle energy consumption and CO2 emissions data developed forthe FPA by Battelle Memorial Institute.

Mailer weight, product weight, and product-to-mailer ratio calculated by Packaging &Technology Integrated Solutions, LLC (PTIS).

Page 47: Flexible packaging presentation_dec2013

Source: The Dow Chemical Company, internal calculations based on data derived perEnvironmental Defense (www.papercalculator.org); Boustead Model V5; The ULS Report,February 2007; and a raw material cradle-to-gate, plus recycle system boundary.Packaging weight, product weight, and product-to-packaging ratio calculated byPackaging & Technology Integrated Solutions, LLC (PTIS).

Multi-unit PackagingFlexible collation shrink wrap packaging reduces product shift intransit, decreasing breakage and/or product waste.

• The flexible shrink wrap consumes 35% less energy thanthe alternative.

• Compared to paperboard folding containers (such as in this study), flexible shrink wrap provides an 81% reductionin packaging weight.

• Flexible shrink wrap packaging (in this comparison) offers5 times more product-to-packaging ratio.

109

Multi-unit Product Packaging Product-to- Packaging Weight Energy EmissionsPackaging Weight Weight Packaging Ratio per 100 g Product Consumption Kg CO2 e

MJ/120 oz /120 oz

Paperboard 120 ounces 66.2 g 51:1 1.9 g 2.13 0.05(3,402 g)

Flexible Collation 120 ounces 12.6 g 270:1 0.4 g 1.36 0.05Shrink Wrap (3,402 g)

Cradle-to-grave life cycle energy consumption and CO2 emissions data developed forthe FPA by PE Americas based on readily available data. The results are not criticallyreviewed per ISO 14040 standards and represent the magnitude of the comparativeenvironmental profiles.

Page 48: Flexible packaging presentation_dec2013

1211

1Calculations compare 422.38 g total weight metal can with plastic lid (326 g of contents)versus 337.33 g total weight brick pack (326 g of contents). 2The ULS Report, February 2007, “Coffee Conundrum” Case Study.

Coffee PackagingCoffee packaging includes metal cans, rigid plastic containers, andthe flexible “brick pack.”

• The flexible brick pack consumes 1/4 of the energy usedby alternate packaging.

• The flexible brick pack generates 75% less emissionsthan the closest alternative.

• The energy savings equivalent of changing all steel coffee cansto flexible brick packs is more than 17,200,000 gallons ofgasoline per year.

• The flexible brick pack contains 88% less packaging by weightwhen compared to metal cans.1

• The flexible brick pack reduces the weight of waste to landfillby 72% vs. metal cans (taking recycling rates of cansinto account).2

• Flexible brick packs use 20% less space in shipping thancans,2 reducing transportation emissions.

Coffee Product Packaging Product-to- Packaging Weight Energy EmissionsPackaging Weight Weight Packaging Ratio per 100 g Product Consumption Kg CO2 e

MJ/11.5 oz /11.5 oz

Metal Can with 11.5 ounces 96.38 g 3:1 29.56 g 4.21 0.33Plastic Lid (326 g)

Plastic Container 11.5 ounces 59.53 g 5:1 18.26 g 5.18 0.17& Lid (326 g)

Flexible 11.5 ounces 11.33 g 29:1 3.47 g 1.14 0.04Brick Pack (326 g)

Packaging weight, product weight, and product-to-packaging ratio calculated byPackaging & Technology Integrated Solutions, LLC (PTIS).

Cradle-to-grave life cycle energy consumption and CO2 emissions data developed forthe FPA by PE Americas based on readily available data. The results are not criticallyreviewed per ISO 14040 standards and represent the magnitude of the comparativeenvironmental profiles.

Page 49: Flexible packaging presentation_dec2013

Source: Sealed Air Corporation, www.sealedair.com

Foodservice #10 PackagingFlexible pouch packaging is an alternative to metal cans fora wide range of foodservice applications. The flexible foodservicepouch eliminates sharp edges and offers dispensing fitments andproduct visibility.

• The flexible foodservice pouch consumes 75% less energythan the metal can.

• The flexible foodservice pouch generates 1/10 the CO2emissions of the metal can.

• The flexible pouch is less than 1/10 the packaging weightof the metal can.

• Each case of #10 flexible pouches with finished productutilizes 30% less volume than a case of #10 cans.

1413

Foodservice Product Packaging Product-to- Packaging Weight Energy EmissionsPackaging Weight Weight Packaging Ratio per 100 g Product Consumption Kg CO2 e

MJ/108 oz /108 oz

#10 Metal 108 ounces 312.4 g 10:1 10.2 g 12.59 1.07Can (3,064 g)

#10 Flexible 108 ounces 28.4 g 108:1 0.9 g 2.87 0.11Pouch (3,064 g)

Cradle-to-grave life cycle energy consumption and CO2 emissions data developed forthe FPA by PE Americas based on readily available data. The results are not criticallyreviewed per ISO 14040 standards and represent the magnitude of the comparativeenvironmental profiles.

Page 50: Flexible packaging presentation_dec2013

Source: Robbie Manufacturing, Inc. Cradle-to-gate energy consumption data based on Europeaneco-profiles (www.PlasticsEurope.org).Product weight assumption: Average weight of cooked whole rotisserie chicken.1Data based on 2007 Life Cycle Analysis testing by Robbie Manufacturing, Inc., conducted usingSimaPro 7.1 LCA Software

Rotisserie Chicken PackagingReady-to-eat rotisserie chickens have traditionally been packagedin rigid dome containers. Innovative technology now allows aflexible package to perform in a deli hot case for freshly preparedfoods while reducing environmental impacts.

• Eighty-eight percent less fossil fuel is used, and 85% fewerCO2 emissions are generated during the manufacturing offlexible pouches.1

• The fossil fuel equivalent of changing a year’s worth of rigiddome rotisserie chicken packaging to flexible pouches wouldsave enough gas to drive around the world 1,475 times.2

• The flexible pouch uses 91% less space by case in shipping.More than 12 truckloads of rigid containers are needed to shipthe same amount of Hot N Handy® pouches contained in one53'-long truckload.3

• The flexible pouch offers a 2/3 reduction of solid waste by weight introduced in landfills versus rigid dome packaging.1

• The flexible pouch offers value-added features such as a built-inhandle, a resealable zipper, and being microwaveable and hotcase ready.

1615

Rotisserie Chicken Product Packaging Product-to- Packaging Weight Energy EmissionsPackaging Weight Weight Packaging Ratio per 100 g Product Consumption Kg CO2 e

MJ/40 oz /40 oz

Rigid Dome Container 40 ounces 64 g 18:1 5.6 g 5.49 0.20(Tray + Lid) (1,134 g)

Hot N Handy® 40 ounces 15 g 76:1 1.3 g 1.35 0.03Flexible Pouch (1,134 g)

2Compared to rigid packaging based on annual rotisserie sales of 550 M units. Fuel estimate: 1,809,623 gallons; total miles: 36,729,786.25 @ 20.3 MPG. Calculationsgenerated using U.S. Energy Information Administration and U.S. EPA’s Greenhouse GasEquivalencies Calculator. 3Based on industry average packaging/shipping dimensions of rigid packagedrotisserie chicken.

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www.flexpack.orgFlexible Packaging Association and FPA are registered trademarks of theFlexible Packaging Association. “Less Resources. Less Footprint. More Value.” trademark of FPA pending.

© 2009 Flexible Packaging Association. All rights reserved. 18

Less Environmental

Footprint

17

.

FLEXIBLE PACKAGING OFFERS EXCEPTIONAL

ENVIRONMENTAL BENEFITS TO CONVERTERS,

MANUFACTURERS, RETAILERS, AND CONSUMERS.

OVER ITS LIFE CYCLE, FLEXIBLE PACKAGING

GENERALLY USES LESS ENERGY AND FEWER

RESOURCES, PRODUCES LESS CO2 EMISSIONS,

SIGNIFICANTLY IMPROVES PRODUCT TO

PACKAGE RATIO, REQUIRES FEWER TRUCKS ON

THE ROAD FOR TRANSPORT, AND PROVIDES

NUMEROUS SAFETY AND CONSUMER

CONVENIENCE FEATURES. FLEXIBLE PACKAGING

IS AN EXCELLENT SUSTAINABLE CHOICE;

CREATING MORE VALUE AND LESS FOOTPRINT.

Page 52: Flexible packaging presentation_dec2013

Flexible Packaging Achievement Awards and Innovation Showcase

2013

F L E X I B L E PAC K AG I N G A S S O C I AT I O N

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Kraft YES PackHighest Achievement Award

Gold — Packaging ExcellenceSilver — Environmental & Sustainability Achievement

Manufacturer: Exopack, LLCEnd User/Customer: Kraft Foods

Plant: Battle Creek, MIDesigner/Design Firm: Smart Bottle, Incorporated

Key Suppliers: Foth Production Solutions, LLC; Smart Bottle, IncorporatedKey Suppliers: Information not available

Package Description: Designed to provide a !exible alternative to rigid gallon jugs, the Kraft YES Pack is an innovative and environmentally friendly !exible gallon dressing package. To provide ease

of use by foodservice operators, Kraft YES Pack incorporates a two-handle design and a smaller spout, making the package easier to carry and pour. "e use of !exible materials versus a rigid

container a#ords the customer a package that was manufactured using approximately 50 percent less energy and 60 percent less plastic material.

9

!e Highest Achievement Award is given to a Gold Award winning package ranked by the judges as having contributed most to the advancement of the industry.

Highest Achievement Award

Page 54: Flexible packaging presentation_dec2013

Aashirvaad SelectGold — Printing Achievement

Manufacturer: Paharpur 3PEnd User/Customer: ITC Limited

Plant: Ghaziabad, Uttar Pradesh, IndiaDesigner/Design Firm: Bhawna Saini

Key Suppliers: Sakata Inx (India) Limited, P.T. Emblem Asia, Bostik India Private LimitedKey Suppliers: Information not available

Package Description: Aashirvaad Select 5Kg package is a stand-up pack with authentic looks. !e best part of the pouch is the brilliance in printing. !e main desired property to achieve from

PE "lm was high dart impact strength. !e combination of gloss and matte e#ect has given an abstract look to highlight certain areas of the pack.

Gold Awards

11

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Kraft Fresh TakeManufacturer: Exopack, LLCEnd User/Customer: Information not availablePlant: Menasha, WIDesigner/Design Firm: Information not availableKey Suppliers: Information not availableCompetition Category: Packaging Excellence, Technical InnovationPackage Description: Fresh Take is a new packaging solution that allows two separate ingredients to be packaged together at the retail point of purchase. !e package provides the ability to manufacture, sell, and distribute two di"erent products that do not come in contact before the end use customer purchase. !us, any two products that cannot be mixed before the end use point would bene#t from this #lm structure. !is may also allow for greater shelf life of products that have a short product life after being mixed together.

FLEXOPP B-TNP 8 micron BOPP FilmManufacturer: Flex America IncorporatedPlant: Uttar Pradesh, IndiaDesigner/Design Firm: Information not availableKey Suppliers: Information not availableCompetition Category: Technical Innovation Package Description: !is is the world’s #rst 8 micron BOPP #lm that is suitable for all conversion operations like printing, laminating, coating and metallization. !is replaces currently used BOPP #lms ranging in thickness from 12 microns to 20 microns as the constituent top substrate of 3 and 4 ply $exible laminate structures thus e"ecting a very substantial downgauging resulting in light-weighting, lower material usage, cost savings and a much lower carbon footprint and better sustainability.

Northern Choice CompostableManufacturer: GenpakEnd User/Customer: Condillo FoodsPlant: Aurora, Ontario, CanadaDesigner/Design Firm: SGS — EvolutionKey Suppliers: Innovia FilmsCompetition Category: Environmental & Sustainability AchievementPackage Description: Northern Choice compostable packaging is the result of several years of development work focused on creating a high end retail package meeting the ASTM D6400 standards for compostability. !is was done without sacri#cing graphics or packaging machine performance. Other features over previously available packaging are increased raw material sustainability and reduced solvent usage during printing. A unique feature of our package is that it will also biodegrade under the proper home composting conditions.

Flexible Packaging Innovation Showcase

36

Page 56: Flexible packaging presentation_dec2013

(as of June 2013)

• The Flexible Packaging industry had $26.7 billion in sales in the United States in 2012.

• Flexible packaging is the second largest packaging segment in the U.S., garnering about 18 percent of the U.S. $145 billion packaging market.

• The flexible packaging industry directly employs approximately 79 thousand people.

• Flexible packaging converters range from small manufacturing companies operating a single facility to large integrated corporations with up to 38 individual plant locations.

• The average flexible packaging company employs about 195 people and serves a wide array of markets.

• Exports account for nearly 6 percent of industry shipments.

• The largest market for flexible packaging is food (retail and institutional), accounting for about 58 percent of shipments.

• Other markets for flexible packaging include retail non-food at 12 percent; industrial applications at 8 percent; consumer products at 10 percent; institutional non-food at 3 percent; and medical and pharmaceutical at 9 percent.