Purity Fg For The Food Industry

A Suncor Energy business

PurityPurityTMTM FG Webinar for the Beverage Segment FG Webinar for the Beverage Segment

September 2009TM Marque de commerce de Petro-Canada - Trademark

2 PETRO-CANADA CONFIDENTIAL

Webinar Format

Industry Information

Product Information

Campaign Information

Sales Process

Why are we using this format?

Marketing support includes:•PODs•Sales Sheets•Tech Datas•Testimonials•Product Features

PlanningAppointment SettingInitial MeetingNeeds AnalysisProposalClose

Sales Process


3

The Beverage Industry:The Beverage Segment can be sub-divided into:

PURITY FG. Plant Tough. Food Safe.

The Beverage Industry

• Wine• Coffee • Tea• Vinegar (Acetic Acid)

• Breweries• Soft Drinks, Water, Juice• Alcoholic Drinks



4

Feedback from 2008-2009 Survey Respondents: Food Safety was a primary concern 80-90% had never tried Petro-Canada Lubricants. Lack of awareness was cited as the main reason for not purchasing from Petro-Canada. Communications was the key to gaining relationships. Information such as product and company data were important. A new insight was how much phone and e-mail had risen as preferred forms of contact. Only 25% had national contracts. Only 33% had concerns about OEM approvals – primarily for compressors & beverage systems. Over 75% had increased their food grade lubricant purchases. 88% of lubrication was done in-house. Reducing downtime was a key concern for 75% of respondents.

The Beverage and Food Industries have similar views and experiences with lubricants:




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Harsh Conditions for Performance:

Demand levels fluctuate throughout the year

Constant operation during busy months makes downtime very expensive and limits the opportunities for scheduled maintenance

Demand for products often shifts with limited notice, changing demand for products and package sizes, causing significant impact on production staff in their re-configuration of equipment

Wide variety of equipment in use further complicates the selection of lubricants

The Beverage Industry faces it’s own unique challenges:




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Focus on Safety:

High concern with food safety as evidenced by adherence to strict quality protocols (HACCP, GMP, ISO 22000).

Plants are inspected by government agencies and 3rd party companies, and corporate reputations are impacted by product quality

Accidental oil contamination during the bottling and canning process is a serious risk.

Strict regulatory requirements exist and failure to comply is coupled with costly penalties.

The Beverage Industry faces it’s own unique safety challenges:



Food Industry Sub-Segments

#3 - Beverage

Attractiveness: medium to high– second largest sub-segment with 12% of total industry

shipments. – large user of refrigeration lubricants - Reflo A potential.– large plants require broader line of lubricant products.– potential ties to private fleet lubrication business.– slightly lower margins as major oils focused on direct

supply agreements

Ability to serve: medium to high– tougher to break into as six very large players control

the large majority of the market.– a high volume product is seamer fluid which we have

recently added to our line– limited but growing experience in this sector (Labatts

Canada business, Anheuser Busch - local supply of Reflo A, Coca-Cola - local bottling plant location, Pepsi)

Attractiveness

Abi

lity

to s

erve x



#1 – BreweriesAttractiveness: high

– 2nd largest industry sub-segment with just under 20% of total industry shipments.

– large number of large bottling / canning plants.– use a broad range of lubricants in processing

operations.– very performance focused high margins.– high potential for other high margin / high volume

niche products sales: refrigeration fluids.

– potential ties to private fleet lubrication business.Ability to serve: high– Petro-Canada PSO bundle covers > 90% of

processing applications– Sales and distribution coverage strong in key

geographic areas – Petro-Canada has experience in selling to and

servicing this sub-segment (Labbatt’s)– Ability to differentiate from competitors in

consolidated supply opportunities.

Attractiveness

Abi

lity

to s

erve

x



#2 – Soft Drinks, Juice & Water

Attractiveness: medium to high– 2nd largest industry sub-segment with just over 40% of

total industry shipments.– large number of bottling / canning plants with some

regionalization– high percentage use of food grade products (inspections /

HAACP programs / ISO 22000) – use a more limited range of lubricants in processing

operations. Potential supply consolidation.

– potential ties to private fleet lubrication business.

– tougher to break into as six very large players control the large majority of the market.

Ability to serve: medium to high– Petro-Canada PSO bundle covers >90% of processing

applications. – Sales and distribution coverage strong in key geographic

areas – Petro-Canada experienced in selling to and servicing this

sub-segment (e.g. Pepsi, Nestle, Anheuser-Busch, Coke)

Attractiveness

Abi

lity

to s

erve x



#3 – Alcoholic Beverages

Attractiveness: medium – Small sub-segment with 3% - 5% of total industry

shipments– large plants require broader line of lubricant

products.– slightly higher margins as industry is specialized

Ability to serve: medium to high– a high volume product is seamer fluid which

we have recently added to our line

– limited but growing experience in this sector (Diageo, Glenmorangie)

Attractiveness

Abi

lity

to s

erve

x


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When it comes to beverage plants, H1 is the standard.PURITY FG meets all NSF and CFIA requirements for incidental food contact


Most PURITY FG lubricants

also have Star-K and Halal letters of

compliance.

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NSF ClassificationsH1 Incidental food contact

H2 No contact with food

3H Release Agents

HT1 Acceptable for use as a heat transfer fluid where there is a possibility of incidental food contact

n Incidental/accidental food contact

n1 General oils and greases (not food grade)

n2 Hydraulic oils (food grade and non food grade)

n3 Protective Oils

t1 Refrigerant/Heat Exchanger Agents (General)

CFIA Classifications

The PURITY FG Solution.



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PURITY FG presents a number of benefits to customers, including:

A full line of CFIA n and NSF H1 registered Food Grade Lubricants Food grade lubricants designed for Optimum Performance. PURITY FG helps protect machinery and extend fluid lifeConsolidation programs to help lower maintenance costsPURITY FG Seamer-E Fluid – a dedicated seamer fluid recognized by AngelusOEM recognition and our Lubricants “No Nonsense Warranty”Food Safety Expertise, Technical Support and Advice

Our PURITY FG line of premium food grade lubricants are perfectly suited to meet the needs of Beverage plants.



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PURITY FG high-performing lubricants feature:

Gear oils that deliver excellent performance to help extend the life of bottling equipment.Key Products: PURITY FG EP Gear Fluid, PURITY FG Synthetic EP Gear Fluid

Seamer fluid that delivers tough performance in high-speed continuous lubrication seaming units. Key Product: PURITY FG Seamer-E Fluid

Food grade greases that resist water wash-out even in tough conditions.Key Product: PURITY FG2 Clear Grease

Hydraulic oils with oxidation resistance that increase fluid life. Key Product: PURITY FG AW Hydraulic Fluids

PURITY FG lubricants are formulated to provide strong performance even in the harsh operating environments of beverage plants




14PURITY FG. Plant Tough. Food Safe. 14

Customer Need Our Solution Giving the Customer:

Performance:- Constant Operation- Harsh environment

Plant Tough lubricants with excellent capabilities designed for long fluid life and effective equipment protection

Increased Uptime andLowered Maintenance Costs due to smoothoperation

Safety: - Risk of contamination - Strict Regulations

H1 lubricants that are NSF and CFIA registered for use in applications where Incidental Contact with Food is possible. Peace of Mind

Brand Protection

Cost Pressures:- Wide variety of machinery Inventory Consolidation

One Supplier lowersinventory costs

Key Products: - Seamer fluid- Gear fluids- Greases- Hydraulic oils

PURITY FG Seamer-E FluidPURITY FG EP, Synthetic EP Gear FluidsPURITY FG2 Clear GreasePURITY FG AW Hydraulic Fluids

Premium Food Grade lubricants that are

Plant Tough and Food Safe.



Selling into the Beverage Industry.

15PURITY FG. Plant Tough. Food Safe.

KEY PURCHASING CRITERIA – Required regulatory registrations– Product performance

– Product availability & distribution– Range of products available in food grade line– Competitive pricing (but not lowest)

– Service (both technical and non-technical) – OEM recognition (for critical applications and warranty

periods only)

Incr

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ng I

mpo

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Customer Insights:


Selling into the Beverage Industry.

16PURITY FG. Plant Tough. Food Safe.

Where to call: Where to call: plant based decision making dominates• Lubricants a very small portion of total procurement expenditure (<2%)• ‘Head office’ typically focused on bigger opportunities and has little interest• Diversity of processing operations / lubricant needs from one plant to another

Who to call on: Who to call on: Maintenance Manager• Decision maker is maintenance manager or maintenance engineer• Typically has been involved in plant maintenance for several years, working his/her way

up through plant maintenance organization• Performance focused - must keep operations running - must keep costs in line• Will pay more for better performance or total cost savings - but highly skeptical and

needs proof• “Proof” is as simple as whether the lubricant performs better than the existing product

or not and is reasonably priced

Who to influenceWho to influence• Plant Manager / Owner - reviews decisions of maintenance manager - approves budget• Quality Assurance / Food Safety Manager - ensures food safety and HACCP compliance.• Purchasing - will be involved with very large companies looking for consolidated supply

- bid process


The Beverage Segment

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Converting Accounts


• Demonstrate our industry focus and expertise: In addition to providing excellent lubrication performance, PURITY FG Seamer-E Fluid meets the highest food industry purity standards and fits perfectly in HACCP (Hazard Analysis and Critical Control Point) and GMP (Good Manufacturing Practice) plans. It’s H1 registered by NSF and registration is pending by the Canadian Food Inspection Agency for use in federally inspected plants where incidental food contact may occur.

• Demonstrate that there is no compromise in performance: PURITY™ FG Fluids and Greases provides excellent wear and rust protection.

• Show the proof: create interest Petro-Canada’s entire PURITY™ FG line through trials, references and the benchmarking data in our tech datas.

• Make the offer: have them try PURITY FG Fluids and Greases for themselves - so they can experience the Purity FG performance difference first hand.

• And don’t forget: PURITY™ FG Seamer-E fluid and Petro-Canada’s full line of food grade lubricants, greases and specialty fluids are available around the world. And our local associates and distributors are supported by field sales and field technical professionals.

PURITY FG SYNTHETIC COMPRESSOR FLUIDRPVOT Data

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

Min

utes

RPVOT (minutes) 1208 1484 2364 1129 1163 2078 4680

Purity FG46

Synthetic Competitor





PURITY FG Synthetic


Product Information

Industry Information

Product Information

Campaign Information

Sales Process


PURITY Food Grade

The line includes: Hydraulic oils Gear oils Chain and conveyor fluids Compressor and vacuum pump oils Hook and trolley fluids Heat transfer fluids Greases for every application White oils Seamer FluidAnd… The world’s first EPA NSF H-1

registered antimicrobial lubricants.

The line includes: Hydraulic oils Gear oils Chain and conveyor fluids Compressor and vacuum pump oils Hook and trolley fluids Heat transfer fluids Greases for every application White oils Seamer FluidAnd… The world’s first EPA NSF H-1

registered antimicrobial lubricants.

We have one of the most compelling food grade offerings in the world.

We have one of the most compelling food grade offerings in the world.


Lubrication for the Beverage Segment


Lubrication for the Beverage Segment


Our goal is to be the leading provider of Food Grade Lubricants in the World!

KEY MESSAGE

Worldwide

Distribution

Superior Performance

Specifically formulated for the harsh, demanding conditions typical of food processing operations.

Worldwide Distribution

Facilities and distributors across North America and in over 60 countries around the world.

Superior Capability and ScaleOne of the world’s largest producers of ultrapure, pharmaceutical grade white

oils. ISO 9000, ISO 14001, TS 16949* accredited.

Plant Tough.

Food Safe.

Reliable

Product

Supply

Petro-Canada SolutionPOD

Single Source Product Solutions

Full line of superior food grade lubricants and >350 lubricants,

specialty fluids, and greases.

Full

Product Line


Customers are concerned about the performance of food grade lubricants

Water Resistance (wet plants, water contamination and water-jet cleaning)

PURITY FG GreaseBetter water resistance than specialty food grade and non food grade competitorsPURITY FG Product LineBetter thermal stability and oxidation resistance for longer lasting performance. Operates over a wider range of temperatures.

Wear Protection (gear boxes, bearings)

Managing Temperature Extremes

(hot and cold processing extremes)

PURITY FG SolutionTop 3 Performance Gaps

PURITY FG Gear FluidBetter extreme pressure protection than specialty food grade competitors

PURITY FG Solves the decision maker’s performance concerns.

Customer Insight


PURITY FG Food Machinery GreaseApplicationsApplications• A multipurpose grease that can be used throughout food

processing operations.• Performs very well in sleeve and anti-friction bearings, slides,

guides and couplings.• Available in 2 and 00 grades.

Features and BenefitsFeatures and Benefits• Superior resistance to breakdown in harsh operating

environments. Maintains consistency and lubrication in the presence of

food acids, juices and by-products. Highly resistant to water washout, water jet spray, and

most sterilizing chemicals used in cleaning.

"With PURITY FG we're still cleaning the machines every day, but now we've switched from a weekly re-greasing schedule to monthly.”

Jerry Gilbank, Maintenance Manager for Vitto Brand Foods

PURITY FG GREASE


BEER PROOF – FOAM AND TASTE TEST

The German testing laboratory TUM-Forschungszentrum Weihenstephan in Freising-Weihenstephan Germany, confirmed that Purity FG 2 and Purity FG Clear do not affect beer froth formation and are neutral in smell or taste. For use in bottling machines, barrel filling installations, valves and beer taps.

• Application: Beer taps, barrel filling, valves, brewery equipment

• Claims: PURITY FG2 and PURITY CLEAR greases are suitable for beer taps, barrel filling installations and valves.

• Test method: From the original beer to be tested they will determine the foam value according to Ross & Clark. From the lubricant to be tested they will apply 0.05 g onto a plastic spatula and put in 0.5 liter bottles of beer. The sealed bottles will be stored 3 and 5 days at room temperature. The blank sample (also 3 and 5 days) will be treated but on the spatula no lubricant is applied. After 3 and 5 days the foam will be determined with the Ross & Clark method. It occurs at a triple determination indicating the mean and confidence interval (P = 95%). Additional they did a test of the smell and taste after 3 and 5 days. Results are given verbally by the test persons in the lab compared with a blank sample.

• Result for both PURITY FG 2 and PURITY FG CLEAR greases: No influence on foam, smell and taste.

NEW!


PURITY FG Synthetic EP Gear Fluid

PURITY FG SYNTHETIC EP GEAR FLUID

ApplicationsApplications

• A multipurpose gear fluid that can be used throughout food processing operations.

• Highly effective in food processing applications running under heavier loads, or subject to high & low temperature extremes.

• Outstanding lubrication in all types of enclosed gear sets (worm, helical, bevel and spur).

• Also recommended for lubricating plain or anti-friction bearings.

• May also be used in bearing and chain drives, providing long service life and clean operation.


PURITY FG Seamer-E Fluid

ApplicationsApplications• PURITY FG Seamer-E fluid is specifically

designed for high-speed continuous lubrication seaming units.

Features and BenefitsFeatures and Benefits• Improves system cleanliness for potentially

longer equipment life• Provides strong load carrying characteristics for

better equipment protection • Outstanding water control for better

emulsification• Designed to work with ceramic bearings in

newer systems• Excellent corrosion inhibition for potentially

longer equipment life.

PURITY FG Seamer-E fluid is recognized by PURITY FG Seamer-E fluid is recognized by OEM - Angelus.OEM - Angelus.

NEW!

http://lubricants.petro-canada.ca/en/products/283.aspx



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PURITY FG Seamer-E fluid is a door opener to thebeverage industry!


ADVANTAGESPURITY FG Seamer-E fluid is specifically designed for

high-speed continuous lubrication seaming units, providing excellent performance in:

• System cleanliness• Providing strong load carrying characteristics • Outstanding water control• Designed to work with ceramic bearings • Excellent corrosion inhibition

PURITY FG Seamer-E fluid is registered with NSF as H-1 and CFIA registration is pending. The performance of PURITY FG Seamer-E fluid is recognized by Angelus.

http://lubricants.petro-canada.ca/en/products/283.aspx



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The seaming process is a critical part of the processes in canned drink facilities.



• The seaming machine joins two pieces of sheet metal by interlocking 3 or 5 layers and then pressing them together

• The work cycle of the seaming machine involves 2 stages• Stage 1 joins the 2 pieces of sheet metal • Stage 2 rolls them together to give them greater strength

• Seaming can be made watertight by applying a suitable sealant paste

• The seaming machine can substitute welding applications when materials cannot be heated or to reduce energy costs


Seaming Machines – two basic designs: Stationary can head spin

• Primary design of most machines designed in the “early years”• How it works:

• The can end and can body are held stationary on a seaming chuck by the lower lifter while the seaming rolls revolve around the can • Most units of this type have two first, and two second operation seaming rolls equally spaced and diametrically opposed to minimise chuck and roll deflection • Machines incorporating up to six seaming heads were developed and operate at speeds ranging from 25 to 300 cans per minute (cpm)• Still used extensively in the food industry


Seaming Machines – two basic designs: Can Spin – Rotating

• With the advent of higher volume production, speed requirements increased (particularly in the world of beer and beverage canning)• Can spin (rotating-can) seamers were developedusing multi-spindle design. Machines with 4, 6,8, 10, 12, 14 and 18 seaming stations are now in useproviding production speeds of 100 to 2300cpm

• How it Works:• The can and end components are held betweena rotating seaming chuck and lower lifter• As the container progresses through the cycle (controlledby a seaming cam arrangement), the first and secondoperation seaming rolls respectively contact the can andend to form the double seam. • For thin-walled lightweight cans the present day machine design incorporates driven seaming chucks, driven lower lifters and soft rise cams to prevent can skid or can buckling


Purpose of Air Removal

The deterioration of the quality of canned beer, soft drinksand other products is highly influenced by the quantity ofoxygen contained in the head space of the can afterclosure. Since oxygen has a marked influence on theflavour, odour, colour, clarity, stability, and vitaminretention of some products during storage, its removalprior to sealing is advantageous.Air removal by under cover gassing is used primarily by thebrewing and soft drinks industries. The products of thebrewing industry such as beer, and other similar beveragesare under cover gassed to minimise the amount of residualair in the sealed container. The oxygen in this residual airleft in the container can produce oxidation of the beer andaffect its flavour and contribute to the breakdown of theproducts stability.


Lubrication

• While the Seaming Turret is the heart of the machine,lubrication is its life’s blood. Because of the higherlubrication demands and for maximum sanitation, an ISO 100 ,150 or ISO 220 oil containing good anti-wear additives is preferable to grease for the majority of canning applications although semi fluid greases 00 can compliment the lubrication cycle.

• Oil has FIVE important properties besideslubricating the machine:

• it cools, cleans, protects, seals and very importantly, it’s recyclable

Quote from Seamer Manufacturer – “The use of the correct oil is critical. If the manufacturers recommendations are not followed serious, expensive mechanical failure can occur”


Lubrication Cont…• Most common seamers in the field include:

• 120L: • Older model. • Gear box that houses all components.• Oil reservoir size: Approx 8Litres. (2.5 US Gallons)

• 121L: • Processes approx 1500 cans per min.• A few small sumps total reservoir capacity = approx 15Litre. (4 US Gallons).

• 180S: • Processes approx 3500 cans per min• 7 small sumps total reservoir capacity = approx

50Litres. (13 US Gallons)

• Both 121L & 180S have electronically monitored re-circulating/filtered oil systems.

• Due to the speed and design of equipment loose approx 10-20% of oil per week.


Lubrication Cont…

• Each machine houses approximately 150sets of bearings.

• Many Bearings are “speciality components”, ranging in size from 8inch to 1inch. (Most only supplied by Pneumatic Scale Angelus).

• Seaming Turret comprised of large ceramic roll bearings. Improves seamer roll life, but very expensive to replace if damaged.

• Corrosion can be a significant challenge in seamer applications, especially in systems with steam/mist (water) and acids surrounding the equipment, e.g. beverage, juice, tinned beans, tomatoes, pickling processes.

•Different Lubrication options available include demulsifying oils and emulsifying oils.


Lubrication: Demulsifying Fluid

How it works:• Demulsifying fluids do not mix with aqueous solutions.

Disadvantage:• Corrosive acids and sugars that are part of the product in the canning

operation are able to remain in the equipment, thus rapidly deteriorating seals, while corroding and pitting metal bearings and components.


Lubrication: Emulsifying Fluid

How it works:• Emulsifying fluids disrupt the surface tension of an aqueous solution while

maintaining a lubricating film.Advantage:• Enables the corrosive acids and sugars to be suspended; therefore,

eliminating the potential for significant damage to metal bearings and seals.Perceived Disadvantage:• Due to the amount of particles suspended in the oil, it can be perceived as

being highly contaminated. However, it is through suspending these “contaminates” that the fluid is able to provide the added protection to the seamer’s components.

• Filtration system in place to remove particles.


OEM Recognition in the Beverage Segment

• Seamer Fluid

– Angelus Recognized

– Lubrificantes Aconselhados Approved

• Purity FG

– KHS Approved

– Many products conform to TetraPak specifications

– Petro-Canada is working towards Krones approval

– New TUM-Forschungszentrum Weihenstephan beer endorsement


EcoSia

• Positioned as Petro-Canada’s environmental brand representing high-performing products that help you meet your environmental goals

• Opportunity to target customers in a wide variety of segments that have a growing demand for products that deliver performance while reducing impacts on the environment

• Criteria for inclusion based on internationally recognized testing and classification methods:

– Inherently or Readily Biodegradable based on OECD– Not Environmentally Toxic defined as not acutely toxic to fish, daphnia or algae

according to UN GHS


Existing PURITY FG Beverage Customers.

42

Companies worldwide are realizing the benefit of PURITY FG

Purity Fg For The Food Industry

Education

petrocanada lubricants

high petrocanada pso

high potential

beverage segment

beverage attractiveness

high concern

ndlargest industry subsegment

total industry shipments