WAREHOUSING. 18 locations KY, IN, OH, MI Typical Verst Warehouse Operation: 180, ,000 Sq. Ft.

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1 CAPABILITIES 1

2 COMPANY OVERVIEW Founded in Employees 18 Locations Over 5 Million S. Ft. Over 125 Trucks Over 300 Trailers Contract Packaging Warehousing Public/Contract Distribution Zenith Transportation Brokerage 2

3 WAREHOUSING 18 locations KY, IN, OH, MI Typical Verst Warehouse Operation: 180, ,000 Sq. Ft. 30+ Truck Doors Rail Doors In Multiple locations 30 High Ceilings Rack/Floor Storage Advanced WMS Systems AIB Certification Food Safe Operations Fully RF Integrated Secure Truck Parking Close Proximity to I-75 Public Warehousing 3

4 LOCATIONS Ohio Enterprise Cincinnati, OH 9696 International Springdale, OH 98 Glendale-Milford Rd Woodlawn, OH 356 Three Rivers Parkway Addyston, OH Northern Kentucky 1100 Burlington Pike Florence, KY 2200 Gateway Hebron, KY 300 Shorland Dr. Walton, KY 340 Shorland Dr. Walton, KY Kentucky 1234 Gardiner Louisville, KY 2000 Nelson Miller Pkwy Louisville, KY 440 Greendale Road Lexington, KY 7130 New Buffington Rd. Florence, KY 1985 International Way Hebron, KY Indiana 7025 English Avenue Indianapolis, IN Michigan 1825 Rust Avenue Saginaw, MI 4

5 TRANSPORTATION Regional Asset Based Fleet & National Full Service Transportation Services Domiciled with Drivers and Live Dispatchers in: Walton, KY Cincinnati, OH Louisville, KY Over 100 Late Model Tractors Over & 53 Trailers Same Day Service Yard & Shuttle Service Real Time Communications Team Service for Expedited Shipments 48 State Brokerage Authority Intermodal Services Dedicated Operations EPA Smart way Transport Partner 5

6 SAFETY Observations: At least two per day per supervisor and the information gathered is used to uncover trends enabling us to reduce risks. Observations/interactive conversations with management and employees on the floor discussing hazards proactively Incident Investigations: Used to educate the whole company within 48 hrs. of the incident (Safety Alert). Audited to ensure we have assurance that the incident will not be repeated. Thorough incident investigations with root cause analysis, open-ended questions and total facility and company involvement to reduce risk of reoccurrence Pre-shift Meetings: Audited to ensure relevance of topic and understanding by employees. Pre-shift meetings given by management using demonstrations, scripted daily topics and employee involvement Important proactive aspects: Planning work with risk assessment Managing through processes and systems The right behaviors (all employees) Everyone is involved Performance monitoring Continuous improvement 6

7 QUALITY Quality Program Overview: Our Quality Management System follows the ISO9001:2008 guidelines The program is augmented with cgmp, AIB, Food Safe and HACCP procedures and programs Tiered System: Tier 1 Quality Manual Tier 2 Standard Operating Procedures Tier 3 Work Instructions or DOP s Tier 4 Forms Benefits: Reduce Cost Improve Productivity Reduce/Minimize Environmental Impact Improve Quality Standards Employee Training Document Control Quality Initiatives: ISO GFSI Certified ISO9001:2008 FDA Registered & Inspected 19 Key Element P&G cgmp AIB IMS Listed Smart-way Transport Partner - EPA HACCP LEAN Training Process Improvement ISO9001:2008 CERTIFIED 7

8 GET IN SYNC WITH SHRINK 8

9 VERST LOGISTICS PACKAGING Located minutes from Cincinnati Airport Shrink Sleeve Labeling Automatic & Hand Application TDO & MDO Films Pressure Sensitive Labeling High Elasticity Stretch Sleeve Labeling POP Display Assembly Side Seal / L-Bar Seal Manual and AutomatedAssembly and Inspection Multi-Packing - Club Store Bundling & Pallet Displays Fulfillment Pick pack Re-Labeling Conditioned Storage 9

10 VERST LOGISTICS ADVANTAGES Little or No Capital Investment Capacity to Serve Multiple Automated Lines for Maximum Yields and Volume Capabilities Automated Secondary equipment:» Bulk to Bulk De-Palletizer/Re-Palletizer, Bottle Descramblers & Cap Sorting Bowls, De-Casing, Case-Packing Over 100 sets of automatic application tooling in stock = Significant Savings & Speed to Market Increased Productivity Pre-fill decorating at Verst versus post fill decorating in house ISO9001:2008 ISO22000 GFSI Certified HACCP, GMP, FDA Registered & Inspected IMS Listed, Kosher approved, ABC License Project Management Technical Support / Expertise Supply Chain Management Turnkey Service 10

11 VERST LOGISTICS TURNKEY SERVICES True Turnkey Operation Contract Packaging Shrink Labeling Warehousing & Logistics Transportation One Stop Shop 11

12 CONTRACT DECORATING CUSTOMERS 12

13 CONTRACT DECORATION 13

14 CONTRACT DECORATION Food & Beverage 14

15 CONTRACT DECORATION Personal Care & Household Cleaners 15

16 PALLET DISPLAYS & COMBO PACKS 16

17 CONTRACT DECORATING LABEL SUPPLIES 17

18 CONTRACT DECORATING FILM & CONTAINERS 18

19 SHRINK SLEEVE LABEL APPLICATIONS Tamper Evident Bands Full Body Shrink Sleeves Multi-Packs & On-Packs Increasingly popular for consumer protection in the pharmaceutical, vitamin, food and beverage industries Hugely popular in Wine & Spirits, Food & Beverage, Personal Care, Automotive and Household Chemical industries Product Promotions and cross branded items Package (label) remains intact, once promotional wrap is removed Post Fill In House Pre-Fill or Post Fill InHouse or Outsourced Post Fill Outsourced 19

20 SHRINK SLEEVE LABEL APPLICATION (TDO) 20

21 Shrink Sleeve Application Flow Chart Application Options Auto vs. Hand 1. Volume, run size & number of SKUs 2. Container Drawings/Samples request & evaluation 3. Tooling / change parts availability 4. Timing Requirements / Lead Time 5. Application line requirements Steam tunnel 5. Descrambler/Auto-Orientation/Case Packer - Tooling Shipping Specifications Label Sizing Secondary Packaging/ Logistics Short (Manual) Production Run Full Production 1. Inbound Case/Bags/Bulk Boxes (Lined) /Bulk Palletized 2. Tumble Packed vs. Soldier Packed 3. Pre vs. Post Fill 4. Pallet Load Specification 5. Stack in trailer and warehouse space requirements 6. WMS Tracking/Lot-Date Coding/Inventory Reporting 1. Primarily Determined at Label Development Stage 2. Shrink Label supplier(s) selected 3. Testing with Grid Material - LF & CL Dimensions 4. Panel placement Template 5. Distortion evaluation for artwork development 6. Label Perforation (In-Line)/Placement 7. Final Testing with printed labels, digitals or grey scales 8. Establish Quality Standards - Targets 1. Bags/Trays/Corrugated Boxes/POP Display (Post-Fill) 2. Multi-Packing/Club Store packaging (Post-Fill) 3. Transportation To/From 4. Warehousing and Storage/Safety Stock 5. Supply Chain Management 1. 15,000 (hand) to 50,000 (auto with tooling) 2. Filling line production testing 3 Shipping, top load, micro testing & distribution testing 4 Full Production 21

22 SHRINK PERCENTAGE & SLEEVE LAY FLAT Step 1: Determine Shrink Percentage With Flexible tape, measure the smallest & largest circumference of the container. The difference between c2 & c1 is the Shrink % and can determine film to be used. Label Lay Flat : (In millimeters) Largest Circumference(c2) divided by 2 and then add 3mm for fit during application and tooling consideration. Verst has over 80 sets of application tooling in stock that align with many different Lay Flat sizes. 22

23 SHRINK SLEEVE CUT LENGTH Step 2: Determine Label Cut Length Take a flexible ruler and measure along the container s contour the distance from the bottom of the container, where you want the label to start, to the top, where you want it to end. 23

24 SHRINK SLEEVE TEMPLATE Step 3: Create Preliminary Template: Can be used for initial artwork development but must be confirmed thru line testing with actual containers and materials. Build in clear area (top & bottom) for the application equipment to read as an eye-mark for cutting purposes as well as for a smooth shrink result. 4 mm clear (2 mm top & 2 mm bottom) is the industry standard. Step 4: Seam Offset: measurement of seam to fold typically ¼ to 1/3 of Lay Flat width to allow enough room for back panel graphics. 24

25 ART DEVELOPMENT Shrink Compensation & Distortion Shrink Labels require a distortion or compensation of graphics so when it conforms to the container shape logos and graphic elements appear correct. Take into affect the container shape when designing. A printed grid pattern is a tool that will give data how the sleeve is forming to the container. It will show patterns of distortion areas either to avoid or leave room for compensation of the graphics. Technology is making great strides into the area of shrink compensation or warping software 25

26 SHRINK DISTORTION 26

27 DO I OUTSOURCE OR DO I INSOURCE? Which option applies to my project? Outsource Promotional projects New product launches One time projects Line extension or trial SKU Limited capital budget Limited in-house expertise Limited resources SPEED TO MARKET Insource Established business Installed equipment In-house expertise Long term cost savings plan Increased volume Approved capital spend Technical resources/expertise YOU HAVE TIME 27

28 PRE-FILL VS. POST-FILL SLEEVE APPLICATION Pre-Fill (Outsourced) Reduced Downtime Increased Efficiency Reduced Scrap No Lost Batches No Lost Product Outsource Expertise Post-Fill (InHouse) Increased Downtime Decreased Efficiency Increased Scrap Lost Batches bad sleeves Lost product bad sleeves Long Learning curve SPEED TO MARKET 28

29 PRE-FILL DECORATING QUALITY & TESTING Grid Film & Lab Testing Inspection Incoming Checks Color, Copy, Dimensions Smart System High Label, No Label, Splices Vision System Specific Graphics Human Inspector 100% Online Visual Checks Post Decoration Checks Top Load, UPC, Overflow 29

30 EQUIPPED FOR SPEED State of the art Sleeve Label application line High speed servo driven Vacuum conveyors for gentle handling of empty cans & lightweight bottles In-line defect detection New tunnel design with reduced energy usage High reliability and quick changeover design Capable of 600 units per minute speeds 30

31 NEW: HIGH ELASTICITY STRETCH SLEEVES First Contract Decorator in the USA with Equipment Alternative to Shrink Sleeves Lower cost than Shrink Sleeves Recycling Advantage 360* Billboard No Steam Tunnel Ideal for Dairy Beverage Industry 31

32 NEW: ROLL SLEEVE Verst is the test site for Roll Sleeve technology Utilizes MDO Film Seaming step performed online Seaming without chemical solvents 2 Step process Print & Slit High Speed Application Typically faster than TDO Multiple films types Multiple film thicknesses Ideal for the beverage industry Multiple formats: Glue Applied Wraparound Roll Sleeve 32

33 BE FIRST WITH VERST! First to the market Little to No capital equipment expenses. First to the market: Ahead of the competition. First to the market: Expert technical support and customer service. First with Turnkey solutions from the leading Logistics provider in the industry. 33

34 CONTACT US Will Schretzman Vice President - Packaging wschretzman@verstgroup.com Sales Contacts: Peter Parker Director of Business Development - Packaging pparker@verstgroup.com Dave Huber Director of Business Development - Packaging dhuber@verstgroup.com VerstLogistics.com 34