Cost-effectively print on-demand customized product labels and packaging in-house to emotionally connect with customers Thursday, November 10, 2016

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1 Cost-effectively print on-demand customized product labels and packaging in-house to emotionally connect with customers Thursday, November 10, 2016 Moderator: Mike Agron, Executive Webinar Producer, WebAttract

2 WELCOME TO Cost-effectively print on-demand customized product labels and packaging in-house to emotionally connect with customers Kevin Karstedt CEO Karstedt Partners, LLC Timothy Cruz General Manager Kanani Foods Glen Fullerton Project Manager Vivid Data Group, LLC

3 Who s In the Audience? A diverse audience of professionals representing 22 countries and 13 states across the following segments: 20% Printer/Paper 17% Specialty Foods 11% Confectionary/Snacks/Desserts 6% Beverage 5% Meat/Poultry/Dairy 3% Medical 2% Animal/Pet Food 36% Other

4 Poll #1 How are you currently sourcing labels? (Select your top two) Outsource Outsource Color + In-house B&W In-house B&W In-house - Color

5 Featured Panel Kevin Karstedt CEO Karstedt Partners, LLC Timothy Cruz General Manager Kanani Foods

6 Richard Fischer Director Kevin of Karstedt Business Development CEO Inside GNSS Karstedt Partners, LLC

7 Small Brands Labeling Opportunities What s driving change? Kevin Karstedt kevin@karstedt.com

8 External Perspective

9 External Forces

10 Rurbanism Give-a-nomics Commsumption American Express Survey

11 Fertile Ground for Entrepreneurs

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17 Companies that produce consumer goods Segment/Retailers Number of Firms Top # % of Revenue Controlled Bakery-Commercial Breakfast Cereal Dairy Products Meat Products-Secondary Processing Poultry processing Fruit & Vegetable Processing Snack Food Cookies & Crackers Seasonings & Dressings Breweries (including microbreweries) Distilleries Coffee & Tea Manufacturing 2, ,100 3, , , % 80% 75% 65% 90% 75% 90% 75% 90% 90+% 90% 90%

18 The Large Players Segment/Retailers Number of Firms Top # % of Revenue Controlled Bakery-Commercial Breakfast Cereal Dairy Products Meat Products-Secondary Processing Poultry processing Fruit & Vegetable Processing Snack Food Cookies & Crackers Seasonings & Dressings Breweries (including microbreweries) Distilleries Coffee & Tea Manufacturing 2, ,100 3, , , % 80% 75% 65% 90% 75% 90% 75% 90% 90+% 90% 90%

19 Smaller Brands Segment/Retailers Number of Firms Top # % of Revenue Controlled Bakery-Commercial Breakfast Cereal Dairy Products Meat Products-Secondary Processing Poultry processing Fruit & Vegetable Processing Snack Food Cookies & Crackers Seasonings & Dressings Breweries (including microbreweries) Distilleries Coffee & Tea Manufacturing 2, ,100 3, , , % 80% 75% 65% 90% 75% 90% 75% 90% 90+% 90% 90%

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24 External Forces

25 www. cmtc.com

26 www. cmtc.com

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29 Convergence of Need with Capability

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32 Opportunity

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38 Richard Fischer Director Timothy of Business Cruz Development General Manager Inside GNSS Kanani Foods

39 Kanani Foods, Las Vegas NV

40 Primary products was bulk sushi, packed in plain brown boxes with a simple label California Roll 50 Pieces

41 Third Rate Label

42 Labeling was a very labor intensive, manual process without the greatest of results Pre-Printed Label Gourmet Grab & Go Thermal Printer for Text Price Tag Guns for Production and Expiration Date

43 As we grew Pre-Printed then Overprint Went to a larger label Expensive, but looked cheap Very time consuming 800-1,200 per day Gourmet Grab & Go

44 Labeling took away from more important activities Confusion and Poor Workflow Have to find and load different configurations and sizes of Pre-Printed labels No automation labels printed from printed orders Labeling became almost as big of a job as preparing the food Printers Orders Labels

45 We identified 4 critical areas to address for the new Label Project Compliance laws and regulations for retail labels Branding internal and external Labor Effectiveness focus on food, not labels Cost Reduction savings and reinvestment

46 Compliance Resolution was not good enough for label size Had trouble finding space on the label to print the proper USDA bugs Not enough space to put everything in the Proper size font and have it meet USDA requirements for legibility

47 Branding We wanted our own internal Noosh We wanted external private branding Jamba Juice New Leaf

48 Labor Effectiveness Need better solution for labor effectiveness Number of SKUs going up Labor required increasing due to volume and variety Label printing became critical path bottleneck for your entire production and operations Process was unsustainable for growth beyond 1,200 per day

49 Printer with color and resolution capability Software and integration capabilities to meet: Compliance Branding Internal and Private Easy workflow Lower maintenance costs Easy to use 12 per second 1600 DPI Up to 8.5 wide

50 20,000 products per day across 4 Shifts

51 Kanani Foods Label Cost Before Afinia L801 Memjet powered printer: Branding: Single color pre-printed label stock and thermal printing for variable data Compliance: Difficult to meet FDA/USDA labeling regulations with size and resolution resulting in product recalls Labor: Printing took 12 hours per day across 4 shifts Material & Printing Cost: Pre-Printed plus thermal overprint: $0.10 per label, 4 x2

52 Kanani Foods Label Cost With the Afinia L801 Memjet powered printer: Branding: Print on-demand full CMYK color Compliance: Easy to print FDA/USDA compliant labels with small fonts and graphics Labor: Lower labor costs - Print 1.5 hours per day across 4 shifts Material & Printing Cost: $0.03 per label, 4 x2 $0.04 per label, 2.5 x6 $0.03 per label, 3 Circle *Minimal inventory management only blank labels

53 Kanani Foods Label Cost Cost Savings and Productivity Gains: Material & Printing 20,000 labels per day = $ ,000 2 $0.03 vs $0.10 = $700 10,000 $0.04 vs $0.10 = $ x3 new capability 20,000 labels per day 12 hrs vs 2 hrs = 84 % Maintenance Costs = 10% No reloading of labels for different brands Capability for larger size labels for expanded branding, compliance and readability Cost Savings and Productivity Gains = 94% by printing labels in-house

54 What s Next.

55 Poll #2 Based on today s webinar, how would you see your organization using in-house color label printing? (Select all that apply) Cost reduction Control over my process Expand business through label customization Brand enhancement and positioning Open up new markets and geographies

56 Ask the Experts Kevin Karstedt CEO Karstedt Partners, LLC Timothy Cruz General Manager Kanani Foods Glen Fullerton Project Manager Vivid Data Group, LLC Tina.Voss@Memjet.com or

57 Poll #3 Having attended today s webinar, which of the following are you interested in? (Select all that apply) Getting print samples and a brochure Attending future Memjet webinars Be featured in a case study Have a Memjet representative contact me Still considering

58 Ask the Experts Kevin Karstedt CEO Karstedt Partners, LLC Timothy Cruz General Manager Kanani Foods Glen Fullerton Project Manager Vivid Data Group, LLC Tina.Voss@Memjet.com or

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