packaging and technology integrated solutions flexible
TRANSCRIPT
Packaging and Technology Integrated
Solutions Flexible Packaging Manufacturing:
Advances/Advantages
Report to the Membership
FPA Fall Executive Conference Meeting
Chicago, Illinois / September 26, 2013
Tom Dunn and Michael Richmond
About
HAVI Global Solutions Confidential & Proprietary | 9/24/2013 | 2
CONTENTS
1. Executive Summary
2. Background and Scope of Work
3. Interview Results
4. SWOT Insights
5. Cost Models
6. Conclusions
7. Appendix I: Methodology
8. Appendix II: Cost model assumptions
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INSIGHTS: MANUFACTURING
ADVANCES & ADVANTAGES
Costs of Flexible packaging formats
now compare very favorably to
traditional rigid packaging ones.
State-of the art productivity and
throughput of flexible packaging filling
equipment offer realistic choices
when new capacity is needed.
Job skill training should accompany
new hardware for flex pack filling
equipment to realize its capacity.
In-place capacity and skill sets favor
traditional rigid packages.
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BACKGROUND
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Foil Retort Pouch
Beverage
Plastic Retort Pouch
Dried Fruit
Liquid refills
Snacks
RTE Cereal
Pet Treats
Consumer Environment Manufacturing
Stated reason(s) for change5
Changing Flexible Packaging Landscape
1979 1981 1987 1989 1992 1995 19961995
Flexible Packaging Landscape: 2013
Domestically:
• FPA supports industry efforts to grow US demand for flexible packaging.
• US Flexible packaging Industry: $27.7 billion annual sales=+3.4% y-t-y(~$1 billion net)
• Flexible Packaging can replace rigid plastic, metal and paperboard packaging
• State of the art Flexible packaging provides many material advantages:
• Recent experience: significant strategic private equity investment
Globally:
• Developing economies use flexible packages in many product categories for which the
US continues to use rigid package formats
• Strong global growth: Southeast Asia & Oceania (~10%); Central & East Asia (5%),
Eastern Europe (6%), .
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• Low package/product weight • Portability • Barrier
• More product retrieval • Convenience • Material efficiency
• Easy open & reclose • Hermetic seals • microwave ability
1. Flexible packaging provides consumer-preferred features and
functionality
2. Flexible packaging consistently “wins” life cycle analysis
comparisons– Alternative to expectation of recyclable packages
– Alternative to expectation of recycled-content packages
3. Nevertheless, other package formats continue to dominate market
segments where flexible packaging can offer new benefits:1. Dry foods (cereals)
2. Still liquids
3. Pet Foods
4. Lotions and other non-food liquids
4. What needs to change for flexible package formats to grow and
dominate these segments?
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Context of FPA Manufacturing Project
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TOPLINE ADVANCES IN
MANUFACTURING AND
FILLING FLEXIBLES
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Advances in manufacturing flexible packaging
Equipment
• Electronic drives
• Digital control systems
• Solventless laminators
• Extruders: auto die control
• Gravure ink station trolleys
• 8-color flexo presses
• Digital to plate/cylinder
• Sophisticated bag making lines
Materials
• High strength linear and
metallocene polyethylenes
• High barrier metallized films
• Coextruded films
• Solventless adhesives
• Water-based adhesives
• Extrudable barrier resins
• Paper-like films
Better quality, efficiency, yield
Smaller economic order quantity
Sourced –reduced structures
multifunctional films
Examples of benefits to end users
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Advances in filling flexible packages (dry products)
• PLC or PC controls for all timing functions
• Servo-controlled rollstock movement
• Broad height/width/gusset size flexibility : 20 minute change-over
• Pneumatic robotics for piece handling
• Roll-to-roll auto-splicing
• In-line form/rotary fil-seal configuration
CAPACITY: ONE $750,000-$1MM SUP LINE (DRY PRODUCT)Design
ppm
run
efficiency
Effective
ppm
Min/
hr
hr/
shift
shift/
day
day/
wk
wk/
yr
pkg/
yr
200 80% 160 60 7.5 2 5 48 1,382,400,000
200 50% 100 60 7.5 2 5 48 864,000,000
200 50% 100 60 7.5 1 5 48 432,000,000
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Advances in filling flexible packages (liquid products)
• Incorporating reclosable fitment adds cost and slows speed.
• Rotary fill/seal design accommodates fitment integration
• Liquid foods may require thermal processing (hot fill, pasteurizing)
• Shelf-stable aseptic liquid packaging possible with roll stock
– 250 ml single serve equipment is commercial (100ppm)
– Choice of existing dairies in Eastern Europe and Asia
CAPACITY: ONE ~ $1.5MM SUP –WITH FITMENT LINE (LIQUID PRODUCT)Design
ppm
run
efficiency
Effective
ppm
Min/
hr
hr/
shift
shift/
day
day/
wk
wk/
yr
pkg/
yr
80 80% 160 60 7.5 2 5 48 221,184,000
80 50% 100 60 7.5 2 5 48 138,240,000
80 50% 100 60 7.5 1 5 48 69,120,000
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MANUFACTURING INSIGHTS:
INSIGHTS
Since 1980, flexible packaging
equipment has provided dramatic
increases in industry productivity,
yield, and quality
In this same period, productivity and
throughput of equipment for
producing and filling flexible
containers has approached rigid
alternatives:
Dry- comparable
Liquid- slower
Efficient operation involves additional
operator skills.
Project Objective
To provide data on:
1. Success factors in end users’ manufacturing and operations when using
flexible packages, e.g.
1. efficiency
2. productivity
3. waste
4. fixed costs
5. variable costs
2. Comparable “benchmark” packaging formats for key consumer product
categories:
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SEGMENT RIGID FORMAT
13 oz. cereal Film liner bag/folding carton
8 oz. sports drink PET Bottle w/ pp closure
5.5 oz. wet pet food Can with lift off lid
16 oz. shampoo Pet bottle w/ dispensing cap
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Background
Understandings sought: Outward looking
1. Are flexible package formats more expensive than rigid alternatives?
2. Do CPGs resist flexible packaging formats assuming associated costs are too high?
3. How do CPGs decide to use flexible packaging formats?
4. Who is involved using whatdecision criteria?
5. Why does the US lag in flexible packaging applications compared to other developed economies?
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Background
Understandings sought: Inward looking
1. Do material and equipment
suppliers share a common
understanding with their
customers of how CPGs
decide to use flexible
packaging formats?
2. What message and media
should material and
equipment suppliers use to
convince CPGs to decide to
use flexible packaging
formats?
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INSIGHTS: BACKGROUND
Flexible packaging formats have
made considerable inroads over the
past thirty years
In this same period. productivity and
throughput of equipment for
producing and filling flexible
packaging have grown significantly
As a general category of containers
for consumer goods, Flexible
Packaging delivers on all three key
dimensions of “sustainability”
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METHODOLOGY
For Details on Methodology,
project team and timing, see
Appendix I.
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INTERVIEW
RESULTS
FPA Interviews: Decision makers
Decision Maker
Senior mgmt
Finance
Marketing/brand mgmt
Manufacturing
Product Quality
Procurement
Who Decides?
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FPA Interviews: Decision makers/influences
Decision Maker
Senior mgmt
Finance
Marketing/brand mgmt
Manufacturing
Product Quality
Procurement
Who Decides?
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Influencing factor
Capital Outlays
Consumer insights
Consumer insights cost
1 packaging cost
2 packaging cost
Outsourcing possible?
“Sustainability”
↑ Performance/function
Aesthetics
What influences?
FPA Interviews: Decision makers/influences/sources
Decision Maker
Senior mgmt
Finance
Marketing/brand mgmt
Manufacturing
Product Quality
Procurement
Who Decides?
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Influencing factor
Capital Outlays
Consumer insights
Consumer insights cost
1 packaging cost
2 packaging cost
Outsourcing possible?
“Sustainability”
↑ Performance/function
Aesthetics
What influences?
Information sources
Conferences
Suppliers
Trade shows
Magazines/e-zines
Colleagues
Trade associations
Info source?
FPA Interviews: More context for Decision Making
Product Life Cycle
New Existing
Region
Asia Europe USA
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Organizational
Brand Owners Interviews: Geographic
-1 0 1
Senior mgmt
Finance
Mktg/brand mgmt
MFG
Quality
Procurement
R&D
FieldSales
Brand Owners Existing Products
Organizational Influences
USA Europe Asia
Least Influence Most Influence -1 0 1
Senior mgmt
Finance
Mktg/brand mgmt
MFG
Quality
Procurement
R&D
FieldSales
Brand Owners New Products
Organizational Influences
USA Europe Asia
Most InfluenceLeast Influence
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Influences
Brand Owner Interviews: Geographic
CapEx
Consumer info
Customer research cost
1° PKG cost
2° Pkg cost
Contract Packer?
Sustainable
+ perform/ function
Asthetics
Brand Owners Existing Products
Influencing Factors
USA Europe Asia
Most InfluenceLeast Influence
CapEx
Consumer Info
Consumer info cost
1° Pkg cost
2° Pkg cost
Contract Packer?
Sustainable
+ perform/ function
Asthetics
Brand Owners New Products
Influencing Factors
USA Europe Asia
Most InfluenceLeast Influence
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INSIGHTS:
BRAND OWNER INTERVIEWS
While consumer preferences have
major influence, the cost to obtain it
does not.
Senior management (Asia & EU) and
market/brand Management (USA)
make decisions about what package
format to use.
Additional investment has major
influence, especially when converting
existing products
Co-manufacturing is more important
in the US than in Asia and EU
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Influences
Supply Chain Interviews: USA
Senior mgmt
Finance
Mktg/brand mgmt
MFG
Product Quality
Procurement
R&D
FieldSales
Supply ChainPerception of
Organizational Influences
CoMan Machine Material
Most InfluenceLeast Influence
CapEx
Consumer info
Consumer Info $
1° Pkg $
2°/Transport Pkg $
CoMan?
Sustainable
+ perform/ function
Asthetics
Supply ChainPerception of
Influences on Decisions
Coman Machine MaterialMost InfluenceLeast Influence
OEMs: No summary
response too low
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INSIGHTS:
SUPPLY CHAIN INTERVIEWS
Brand owners do not indicate if their
interest in flex pack formats pertains
to existing or new products.
Perceptions of Brand owners
Marketing & Brand Mgmt makes
decisions with an eye towards
consumer data
The need to invest additional
capital has major influence
Neither primary nor secondary/
transport packaging costs have
major influence
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Sources
End Users & Supply Chain Interviews
Conferences
Suppliers
Trade Shows
Print/e-zines
Colleagues
Trade Assn
Brand OwnersInfo Sources
USA Europe Asia
Most InfluenceLeast Influence-1 0 1
Conferences
Suppliers
Trade Shows
Print/e-zines
Colleagues
Trade Assn
Supply Chain Info Source Perception
Coman Machine Material
Most InfluenceLeast Influence
OEMs: No summary
response too low
OEMs: No summary
response too low
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INSIGHTS:
INFO SOURCES INTERVIEWS
Material suppliers, making regular
calls on brand owners usually provide
information about flex pack formats.
Brand owners do not consider trade
associations and conferences
important sources of information
about flex pack formats.
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INSIGHTS: INTERVIEW
RESULTS
Senior and Marketing/Brand
management make the decisions
about package formats.
Consumer insights have great
influence decisions on package
formats
Information about available
technology usually originates with
suppliers of materials making regular
sales calls.
Existing filling capacity: critical factor.
Procurement does not choose the
packaging format!
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“SWOT” HIGHLIGHTS
SWOT: Shared Themes
STRENGTHS WEAKNESSES
“Package to product weight” ratio
Less waste
Transportation costs (in and out)
Minimal fit to mainstream environmental
packaging “solutions”
OPPORTUNITIES THREATS
Hybrid concepts
Gen-X and Gen-Y familiarity
Cost per unit of product with EPR taxes
Retail ready packaging for retailers
Public misconceptions about plastics &
chemicals
Installed base of efficient filling lines
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SWOT: Segment Comments
Dry Food (cereal) Still liquids/juices
Material efficiencies
Product visibility
Easy to add reseal
Lower cost of incoming
delivery at mfg
Material cost
Stronger secondary
and transport
package
disposed packaging
volume
Range of heat
tolerance for filling
Good economics
Retail ready packaging
systems
Filling speed
improvements
Custom shapes
Pet Food Non Food liquids
Easy open and reclose
Pest resistance
Complete dispensing
Significant waste
reduction
Filling speed of bottles
Pouring and handle
features
Other animal feed
(beyond cats/dogs)
)
Refill economy
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SWOT INSIGHTS
Flexible packaging formats align very
well with consumer trends and
preferences
Positive strengths and opportunity
areas
Faster liquid filling speeds present a
major opportunity for liquids in flex
packs
Most consistent strength: package-to-
product weight ratio
Public misconceptions about plastics
& chemicals threaten packaging
generally
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COST MODELS
For other details of Cost model
current assumptions (awaiting
validation) not in presentation ,
see Appendix II.
Common cost model line items
Primary Packaging Delivered Cost
Direct Labor: skilled
Direct Labor: unskilled
Secondary Pkg
Transport Pkg
Pallets
Outgoing Freight
Indirect Labor
utilities-power
utilities-gas
Depreciation
Warehousing
Insurance/Maintenance/Taxes
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Project Cost Model
Common financial assumptions*
Target Volume for each segment’s production= 1 market share point
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Daily Cost : skilled worker.@ 1.33 x payroll $202
Daily Cost : unskilled worker.@ 1.33 x payroll $117
Daily Cost : indirect worker.@ 1.33 x payroll $170
Cost per Kwh of electric power= $0.13
Cost per Therm of natural gas= $1.00
Pallet storage Cost @ $10/ sq. ft. =$90 $90
Shipping Cost per mile=$1.62 $1.62
Depreciation=7% 7%
Property taxes/insurance=10% 10%
Service life of filling equipment (years) 20
*all cost estimates subject to validation
Project Cost Model
Common operational assumptions*
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Average miles shipped 100
Days per year per shift (5da/wk*50 wk/yr) 250
Cost per corrugated shipping case $0.10
No. cases per pallet 25
Cost per pallet $10
Weight per pallet (lb) 70
Max Load per pallet (lb) 2,800
Weight/TL (Lbs) 40,000
*all cost estimates subject to validation
Cost Model: Dry food (cereal)
11.3 oz. Dry Cereal*
Bag in Box EZ Open /zipper Doyen Style
$ 0.17ea $ 0.15ea
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*all cost estimates subject to validation
Project Cost Model
13 oz. Cereal segment assumptions*
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ITEM Rigid Flexible
Annual package production 500,000 500,000
Filling Line Cost $1,000,000 $750,000
Filling Line speed (ppm) 250 200
Filling Line run-to-scheduled time ratio 95% 80%
Unit Container Cost $0.17 $0.13
Unit Container Weight (lb.) 0.17 0.02
Secondary Container Cost $0.0 $0.05
Secondary Container Weight (lb.) 0 0.5
Unit Container/secondary container 1 12
% Containers wasted 1% 2%
Skilled Labor manning 0.5 0.5
Unskilled Labor manning 1 1
Indirect Labor manning 0.5 0.5
Power demand (KwH) 1 1.5
Heating demand (Therm) ---- ----
*all cost estimates subject to validation
Dry Food Insights
Manufacturing
real near term opportunity
Need for Shippers/high compression corrugated : important cost factor
VFFS/bag-in-box skills relevant to flexible
Case packaging: trade off unskilled labor cost for capital investment
Other
On-shelf display density favors quad-seal format
Retail ready packaging (RRP) is a positive
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Cost Model: Still liquids & juices
8 oz. Sports Beverage
PET Bottle with PP twist cap Doyen Style Pouch with fitment
$ 0.10ea $ 0.15 ea
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*all cost estimates subject to validation
Still Liquids Insights
Manufacturing
Slow filling speeds hinder this opportunity.
Liquid product preservation has major process cost impact
Hot fill
Aseptic
Pasteurizing
Rollstock efficiency (compared to pre-mades) may be imminent.
Other
Target market grew up with pouches
Retail display management is challenge
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Cost Model: Pet food
5.5 oz. Wet Pet Food
2 piece Al can lift off lid Foil retort pouch
$ 0.12 ea $ 0.15 ea
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*all cost estimates subject to validation
Pet Food Insights
Manufacturing
Slow filling speeds hinder this opportunity.
Retort cycle time and energy consumption favor pouch
Decades of can-making and filling created an efficient system
Other
Can Coating issue (BPA)
Ease of opening and storing partial package contents important.
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Cost Model: Non-food liquids
16 oz. Shampoo
PET Bottle with PP pop-up cap Doyen style pouch (hang hole & fitment)
$ 0.20 ea $ 0.15 ea
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*all cost estimates subject to validation
Non-Food Liquids Insights
Manufacturing
Slow filling speeds hinder this opportunity.
Waste on pouch line may detract from unit cost advantage
Rollstock efficiency (compared to pre-mades) may be imminent
Other
Refill format has taken hold in other countries
Convenience and weight important.
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INSIGHTS:
COST MODELS
Flexible packaging format costs
compare very favorably to traditional
rigid package ones.
State-of-the-art productivity and
throughput of flexible packaging filling
equipment can provide advantages
when new capacity is needed.
Job skill training must accompany
new hardware for flexible packaging
equipment to realize its potential.
Installed capacity and and skill sets
favor the status quo for traditional
rigid packages.
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COMMUNICATIONS
OPTIONS
Reaching busy decision makers:
Sr. & Brand Mgmt
R&D
Govern-ment
Con-
sumer
Manufac-turing
Field Sales
Supply Chain
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Through the competing messages?
Sr. & Brand Mgmt
R&D
Govern-ment
Con-sumer
Manufac-turing
Field Sales
Supply Chain
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Industry
Initiatives
With the trusted messengers!
Sr. & Brand Mgmt
R&D
Govern-ment
Con-sumer
Manufac-turing
Field Sales
Supply Chain
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Industry
Initiatives
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COMMUNICATIONS
INSIGHTS
Busy organizational groups
responsible for the future health of
brands and the whole enterprise
make decisions about packaging
formats.
Material “Suppliers” are the primary
source of information about flex pack
options. They only have direct access
to organizational groups who can
influence the decision makers
Suppliers should provide their
contacts with information that can
persuade decision makers to
consider flex pack formats.
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Reprise
Understandings: Outward looking
1. Are flexible package formats more expensive than rigid alternatives?
2. Do CPGs resist flexible packaging formats assuming associated costs are too high?
3. How do CPGs decide to use flexible packaging formats?
4. Who is involved using whatdecision criteria?
5. Why does the US lag in flexible packaging applications compared to other developed economies?
Generally “No”; but convenience
features increase costs for both
1: Consumers, consumers, consumers
2: Capital $,€,Rs
Generally “No”; Capital expenditures
(where excess capacity exists) become
key consideration
Senior management and brand
managers considering consumers
and capital costs
US has installed capacity vs. new
investment elsewhere
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Reprise
Understandings: Inward looking
1. Do material and equipment
suppliers share a common
understanding with their
customers of how CPGs
decide to use flexible
packaging formats?
2. What message and media
should material and
equipment suppliers use to
convince CPGs to decide to
use flexible packaging
formats?
For the most part, yes! , although the
suppliers often only learn about a
decision after it is made during
procurement. The window of
opportunity for industry to influence the
format choice closes before
procurement begins
“Flexible packaging materials and filling
equipment meet or exceed the
consumer preferences, productivity,
efficiency and economics of rigid
alternatives”! Various functional groups
in an organization’s can influence
management decisions by timely relay
of the message.
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CONCLUSIONS
Flexible package formats for dry foods are
as economical and efficient as rigid formats.
Consumer preferences:
a) Greatly influence package format choices
b) align well with flexible packaging
Brand owners expect material suppliers to
provide information about flexible packaging
technology
Information needs extend beyond materials
technology into capital machinery
capabilities.
Advances and Advantages of Manufacturing Processes
That Facilitate the Use of Flexible Packaging
October 30, 2013
Report Contents*
1. Executive Summary
2. Methodology
3. Converting equipment advances narrative
4. Packaging equipment narrative
5. Case studies narrative
6. Interview results analysis
7. Cost Models and sensitivity analysis
8. SWOT Insights
9. Indicated industry priorities
10. Appendix I: Cost model assumptions
11. Appendix II: Sources & references
* Interactive Excel cost model to evaluate alternate assumptions
HAVI Global Solutions Confidential & Proprietary | 9/24/2013 | 58
APPENDIX I
Details on project methodology,
team and timing (June- October ,
2013)
Return to
presentation
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FPA Manufacturing Project Methodology
• Establish background
• Develop questionnaire
• Administer questionnaire
• Analyze resultsInterviews
• Identify sources
• Research std rates
• Obtain estimates
• Analyze sensitivities
Cost model
SWOT Recommendations
Return to
presentation
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FPA Manufacturing Project Execution
7/29
FPA Committee progress
report
8/23
Expert Group Review
9/26
FPA FEC presentation
10/31 Submit Written Report
June
(Background)
July
(Interviews)
August
(Analyze data)
September
(Additional
Analysis)
October
(Draft/review
report)
Return to
presentation
Team Member Primary Project Role
Tom Dunn Project Lead
Mike Richmond PTIS Project Coordination
Keith Damarell PTIS European Liaison
Cyndee Clemann PTIS Domestic Brand Owner Interviewer
Phil McKiernan PTIS Liaison to FPA
Jonathan Fowle Europe/Asia Interview Leader
Dave Benzschawel Domestic Supply Chain Interviewer
Mike Impasato Knowledge leader/flexo printing
Ken Marchetti Domestic Contract Packer Interviewer
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FPA Manufacturing Project Team
Return to
presentation
FPA Project Interviews
Interviews emphasizing 4 end use segments (47)
• 35 brand owners: from 4 segments and 3 regions: Asia, Europe, NA
• 6 Global material suppliers (Includes FPA “converters” &“suppliers”)
• 2 OEMs/ equipment brokers
• 4 Contract manufacturers
Answer Questions
• Who decides?
• What Impacts decision?
• Where is info found?
• When is Choice made?
• Why is choice made?
62 | 9/24/2013 | HAVI Global Solutions Confidential & ProprietaryReturn to
presentation
FPA Project Interviews - Participants OverviewGroup No Sample Titles
Brand Owners (35)
Asia 13 Purchasing Manager, COO, Regional Business Head, Sales Manager,
Category Manager, Packaging Development Manager, Strategic
Sourcing, Purchasing Manager, Marketing Manager, Global Packaging
Development Manager
Europe 15 Packaging Control Manager, Packaging Development Manager,
Purchasing Manager, Commercial Manager, Managing Director, Head of
Procurement, Packaging Engineer, Packaging Development, Supply
Chain, Production Packaging Specialist, Global Marketing Director,
Head of Packaging, Quality & R&D, Head of Innovation Global
Packaging
USA 7 Packaging Tech Mgr/Innovation Entrepreneur, Packaging leader: non-
food liquid & pet products, Manager of Packaging R&D, Structural
Packaging Lead: solid/liquid food, Procurement Manager: flexibles &
rigids, Sr. Group Mgr Pkg R&D
Supply Chain 12 VP Business Development, Director of Contract Packing, VP of
Operations, Project Manager, Business Development Manager,
Director of Marketing, Business Development Director, Director of Mktg.
& Business Devt, US Sales Manager, Director of Marketing, CEO
63 | 9/24/2013 | HAVI Global Solutions Confidential & ProprietaryReturn to
presentation
FPA Project Interviews - Organizations Overview
Group No Companies
Brand Owners (35) ASAL, Avon, Bacardi UK, Clorox, Copella, Del Monte,
DE-VAU-GE, Ganon, Gen Mills, Godrej, Green-n-safe,
Heichelheimer, Henry Lamott, Hunya, Innocent Drinks,
Mamee, MOM Brands, Nestle Cerelac, Nestle UK,
Nivea India, Olivia Herbal, PZ Cussons, Reckitt
Benckiser, Reckitt Benckiser, Royal Canin, Standard
Foods, Starbucks, Target, Ve Wong, Vitaflo, Weetabix,
Wela, Willi Knoll
Supply Chain (12) Lidestri, Sun Products, Heartside, RytWay, ExxonMobil
Films, SKC Films, Berry Plastics, Kelpac Medical,
Copol, Clear Lam, PPI, Hudson-Sharpe
64 | 9/24/2013 | HAVI Global Solutions Confidential & ProprietaryReturn to
presentation
HAVI Global Solutions Confidential & Proprietary | 9/24/2013 | 65
APPENDIX II
Details on cost model structure
current general and segment –
specific assumptions
Return to
presentation*all cost estimates subject to validation
Project Cost Model
8 oz. Sports drink assumptions*
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presentation
ITEM Rigid Flexible
Annual package production 400,000 400,000
Filling Line Cost $2,000,000 $1,500,000
Filling Line speed (ppm) 250 80
Filling Line run-to-scheduled time ratio 95% 80%
Unit Container Cost $0.10 $0.15
Unit Container Weight (lb.) 0.17 0.02
Secondary Container Cost 0.02 $0.05
Secondary Container Weight (lb.) 0.2 0.5
Unit Container/secondary container 12 12
% Containers wasted 0.5% 2%
Skilled Labor manning 0.5 0.5
Unskilled Labor manning 1 1
Indirect Labor manning 0.5 0.5
Power demand (KwH) 3 2
Heating demand (Therm) ---- ----
*all cost estimates subject to validation
Project Cost Model
5.5 oz. Wet pet food assumptions*
67 | 9/24/2013 | HAVI Global Solutions Confidential & Proprietary Return to
presentation
ITEM Rigid Flexible
Annual package production 200,000 200,000
Filling Line Cost $2,000,000 $1,500,000
Filling Line speed (ppm) 400 80
Filling Line run-to-scheduled time ratio 95% 80%
Unit Container Cost $0.12 $0.15
Unit Container Weight (lb.) 0.17 0.02
Secondary Container Cost $0.0 $0.05
Secondary Container Weight (lb.) 0 0.5
Unit Container/secondary container 1 12
% Containers wasted 0.5% 2%
Skilled Labor manning 0.5 0.5
Unskilled Labor manning 1 1
Indirect Labor manning 0.5 0.5
Power demand (KwH) 1 2.5
Heating demand (Therm)
*all cost estimates subject to validation
Project Cost Model
16 oz. Shampoo assumptions*
68 | 9/24/2013 | HAVI Global Solutions Confidential & Proprietary Return to
presentation
ITEM Rigid Flexible
Annual package production 8,000,000 8,000,000
Filling Line Cost $2,000,000 $1,500,000
Filling Line speed (ppm) 600 80
Filling Line run-to-scheduled time ratio 95% 80%
Unit Container Cost $0.20 $0.15
Unit Container Weight (lb.) 0.17 0.02
Secondary Container Cost $0.0 $0.05
Secondary Container Weight (lb.) 0 0.5
Unit Container/secondary container 1 12
% Containers wasted 0.5% 2%
Skilled Labor manning 0.5 0.5
Unskilled Labor manning 1 1
Indirect Labor manning 0.5 0.5
Power demand (KwH) 3 2
Heating demand (Therm) ---- ----
*all cost estimates subject to validation
Packaging & Technology Integrated Solutions
a division of HAVI Global Solutions Direct, LLC
3500 Lacey Road, Suite 600 Downers Grove, IL 60515
Phone: 630-493-7400
Fax: 630-493-7599
E-mail: [email protected], [email protected],
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your technical and management packaging challenges.
We understand consumer, channel and technology trends and provide marketplace insights to
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across the packaging value chain.
69 | 9/24/2013 | HAVI Global Solutions Confidential & Proprietary
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