The Line On Contract Pouch

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The Line On Contract Pouch Production Packaging
.
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Todays Discussion Points

• Review of Contract Packaging
• Consumer / Retailers Perspective
• Pouch Market Dynamics
• Capacity Statistics
• Available Equipment
• Market Trends
• Summary

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Roberts Product Platforms
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Roberts 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

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What is Contract Packaging?

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

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Why is Contract Packaging Growing?

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

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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

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Why do Companies Contract Package?

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

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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

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Global Stand-Up Pouch Consumption

• 1993 800 Million
• 1998 5.9 Billion
• 2003 10.6 Billion
• Source Brand Packaging

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New Product Introductions
Source The Wall Street Journal / Marketing
Intelligence Service
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More Contract Packaging Opportunities?

• 31,000 New Product Introductions in 2000
• Substantial Stand-Up Pouch Market Growth
• Market Differentiation
• Giving Consumers what they want

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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

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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

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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
• Roberts Packaging Estimates

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Machinery Overview
Roberts CFS- Series / Pre-Made Machine
Roberts C - Series / Rollstock Machine

• High Speed Continuous Motion
• Quick Changeover
• Low Scrap
• High Productivity

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Stand-Up Pouch Contract Packaging Market Trends

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

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

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Stand-Up Pouch Contract Packaging Market Trends -
Sliders

• Minigrip/Zip-Pak
• Pactiv
• Pliant
• Presto Products

Roberts Contract Packaging Division Currently in
Trials / Commercial by 4th Qtr. 2001
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Stand-Up Pouch Contract Packaging Market Trends -
Shapes / Contoured
Pre-Made Shaped / Contoured Pouches run on
Roberts CFS-Series of Pouching Equipment
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Stand-Up Pouch Contract Packaging Market Trends -
Side Gusseted
Pre-Made Side Gusseted Pouches run on Roberts
CFS-Series of Pouching Equipment.
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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

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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

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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 Roberts
  Packaging