The Tuna Pouch & Beyond

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1 The Tuna Pouch & Beyond Dennis Calamusa President

2 Shift in Marketing Philosophy New value added products Lower volume - Higher profit New product - New packaging P.O.P Differentiation stimulating sales Incremental increase in packaging cost impacting market share.

3 Why our reluctance to Change? Re-capitalization Present Infrastructure Distribution Issues Retail Shelf Changes

4 Why are we Changing to Flexible? Cost effective alternative to many methods of rigid packaging Need to stimulate sales of flat growth or mature product categories Improved Logistics = reduced operating cost Standardization of Packaging for Shift into Globalization

5 Number of Packages in North America targeted for transitioning to Flexible Packaging Cans - 55 billion Plastic and glass bottles - 28 billion Bag in Box - 20 billion Composites and other billion

6 Competing for Shopper s Attention! In all Retail Outlets Consumer Packaging is Exploding with Color, Visual Effects and Shape...

7 Versatility in all Methods of Flexible Packaging focusing on... Convenience & Point of Use

8 Convenience Foods in Retort Pouches

9 StarKist Tuna in a (retort) Pouch a value added line extension $2.79 retail

10 StarKist Tuna Creations Introduced Nationally July 2003 Marinated Chunk Light Tuna Out sells all pouched tuna combined Represents 4% of total tuna category beats company forecasts by 37%! 3 or 5 oz. Flavor Fresh Pouch

11 Primary Packaging Budget Costs 6 oz. can / top / paper label. est. 8 cents 3 oz. retort pouch printed.est. 7 cents 7 oz. retort pouch printed.est. 10 cents

12 Rigid Container COST Centers Multi-Component Packaging Logistics of Rigid COST CENTERS Purchasing Container Label Cap Receiving Transport Unloading Quality Control Warehousing Material Handling Storage Packaging

13 Global Packaging Shift Source Reduction Transitional Packaging for the future Modern Innovations Improved Operational Logistics

14 Global Packaging Trends Start by Partnering Superior Graphics of Retort StandUp Pouches

15 Standup-Pouch Retort Entrees Easy Homestyle Meal Serves 4 Just Pour Over Rice, Noodles or potatoes oz... $2.99

16 Reclosable Zipper Retort Pouch Packaging Polypropylene Heat Resistant Zipper Feature Convenience for Consumer and Food Service Applications

17 Flexible Benefits in Institutional or Food Service Packaging

18 Retort Film Factors... Requirement for high quality laminates 4 ply front + back / 3 or 4 ply gusset Film structure = PET/Ink/Ad/Foil/Ad/CPP No PVC or PVCD in any film component Reverse printed rotogravure or flexography

19 Semi-automatic Fill-Seal First Step for Retort Packaging Economical, pump filler, temp. controlled sealing Toyo Jidoki handles single serve food service sizes Semi Automatic - 5 to 8 per minute

20 Retort Fill-Seal Machinery Toyo Jidoki Fill / Seal System Up to 120 PPM Toyo Jidoki model TT-9CW Duplex / 2 UP

21 High-Speed Retort Fill-Seal Machinery Toyo Jidoki (TYJ) Fill / Seal System Retort Foods & Beverages Up to 250 PPM Toyo Jidoki model TL-AX1

22 Retort Chamber for Pouch Processing Robotic pouch loading and unloading of trays Auto loading and unloading of trays and carts

23 Automatic Pouch Loading and Tray Transfer System

24 Getting customers started in transitioning to o Flexible Packaging Identify a pouch product candidate Premium Value Added New Introduction New Size Identify a customer and market outlet Target a demographic Retail Club C - Store Use your imagination... be creative!

25 Contract Packaging... valuable resource for continued Flexible Packaging growth Special Expertise with Standup- Pouches and other methods of Flexible Packaging Low Start-Up Costs Test Market, Trial Runs, Regional or National Roll-Out

26 Today s challenge is to grow sales and increase profit Stimulate flat sales Get your consumer s attention Provide Value Added Line Extensions that compliment your core business Develop a Product-Package solution strategy with your Sales Team

27 The Tuna Pouch & Beyond Dennis Calamusa President www. Standup-Pouch.com