The Line On Contract Pouch Production & Packaging

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Today’s Discussion Points

• Review of Contract Packaging

• Consumer / Retailers Perspective

• Pouch Market Dynamics

• Capacity Statistics

• Available Equipment

• Market Trends

• Summary

Robert’s Product Platforms

C artoning

Pouching

Pack ing

D ry & L iquid S torage

Blending

Process ing

C ontrac t Packaging

C F S -S eries Pre -M ade

C -S eries Rol ls tock

M achinery M anufac tur ing

Current Products & Services

Robert’s Credentials• Contract Packaging Division

- 34 Years of Contract Packaging Experience- Bottles- Cartons- Stand-Up Pouches - Our Core Competency

• Machinery Manufacturing Division- World Class Pouch Machine Manufacturing - Rollstock & Pre-Made Pouch Formats- Continuous Motion / Highly Efficient- Our Production floor is the best R & D environment

Continuous Motion offers “Superior Productivity”

What is Contract Packaging?

• The outsourcing of the physical placement of products into packaging components.

Why is Contract Packaging Growing?

•Special Expertise •Cost Effectiveness•Quality•New Package Formats

A Contract Packager Should Provide:

•High Quality Standards•Experience•Strong Ethics•Competitive Costs•Excellent Communication•Controls / Processes / Procedures•Financial Strength•Flexibility with Line Time•Convenient Location

Why do Companies Contract Package?

•Costs….Low Capital•Speed to Market•Special Expertise

Contract Packaging Market

•400 Contract Packagers•80 / 20 Rule•Few Offer Stand-Up Pouch

Packaging•Fewer Offer Automated

Stand-Up Pouching Pre-Made Fill / Seal Equipment

Global Stand-Up Pouch Consumption

0

2

4

6

8

10

12

1993 1998 2003

• 1993 800 Million

• 1998 5.9 Billion

• 2003 10.6 Billion

Source: Brand Packaging

New Product Introductions

Product Introductions in Thousands

05

101520253035

Source: The Wall Street Journal / Marketing Intelligence Service

More Contract Packaging Opportunities?

•31,000 New Product Introductions in 2000

•Substantial Stand-Up Pouch Market Growth

•Market Differentiation•Giving Consumers what they

want

How important is packaging to Retailers & Consumers?

• 98% of Retailers feel zippered packaging positively changed the products and created stronger consumer demand.

• 59% of Retailers feel stand-up pouch packaging positively changed the products and created stronger consumer demand.

• 66% of Consumers feel that packaging innovations are one of the most important features a product has to offer and is ranked third, behind flavor (1) and size (2).

• 67% of Consumers state that zippered packaging is very important to extremely important in their purchase decisions.

Source: Promo Edge 3/99

What type of Pouching Equipment is Available?

• Rollstock High Speed Horizontal Continuous Motion

• Rollstock Horizontal Intermittent Motion• Rollstock Vertical Intermittent Motion with

transverse zippers• Pre-Made High Speed Horizontal Continuous

Motion• Pre-Made Semi-Automated Intermittent Motion

Current & Future Contract Packaging Stand-Up Pouch Capacity

• 1993 = 15.0 Million Pouches

• 1998 = 97.5 Million Pouches

• 2001 = 342.0 Million Pouches

• 2003 = 500.0 Million Pouches

Robert’s Packaging Estimates

0

100

200

300

400

500

600

'93 '98 '01 '03

Millions

Machinery Overview

• High Speed Continuous Motion

• Quick Changeover

• Low Scrap

• High Productivity

Robert’s CFS- Series / Pre-Made Machine Robert’s C - Series / Rollstock Machine

Stand-Up Pouch Contract Packaging Market Trends

More Bells & Whistles•Sliders•Pre-Made Pouches•U-Pack•Shaped Pouches•Larger Formats

Exploding Markets•Pet Treats / Foods•Confectionery / Nuts•Salty Snacks•Dairy Powders•Cookies & Crackers•Liquids

Stand-Up Pouch Contract Packaging Market Trends - Sliders

•Minigrip/Zip-Pak

•Pactiv

•Pliant

•Presto Products

•Minigrip/Zip-Pak

•Pactiv

•Pliant

•Presto Products

Robert’s Contract Packaging Division Currently in Trials / Commercial by 4th Qtr. 2001

Robert’s Contract Packaging Division Currently in Trials / Commercial by 4th Qtr. 2001

Stand-Up Pouch Contract Packaging Market Trends - Shapes / Contoured

Pre-Made Shaped / Contoured Pouches run on Robert’s CFS-Series of Pouching Equipment

Pre-Made Shaped / Contoured Pouches run on Robert’s CFS-Series of Pouching Equipment

Stand-Up Pouch Contract Packaging Market Trends - Side Gusseted

Pre-Made Side Gusseted Pouches run on Robert’s CFS-Series of Pouching Equipment.

Pre-Made Side Gusseted Pouches run on Robert’s CFS-Series of Pouching Equipment.

C-Series Rollstock Continuous Motion Benefits

•Increased Run Speeds•Low Scrap•Enhanced Dwell Time•Extensive Product Diversity•Low Maintenance•High Net Output•Value Added/Rapid Changeover•Flexibility

CFS-Pre-Made Continuous Motion Benefits

•Various Shaped, Contoured, Side Gusset Zippered Pouches

•Increased Run Speeds•Low Scrap•Enhanced Dwell Time•Extensive Product Diversity•Low Maintenance•High Net Output•Value Added/Rapid Changeover•Flexibility

Summary

• Considerations when Contract Packaging– Expertise in Stand-Up Pouches

• 10 Billion Global Pouch Market by 2003 & Contract Packaging Capacity at 500 Million

• Features– Zippers

– Sliders

– Shaped & Contoured

– Side Gussets

• Types of Pouching Equipment / Benefits of Continuous Motion

• For additional Information Contact Robert’s Packaging