Aptar Food + Beverage Jean-Marc Philbois Global Market Development President 36-38 Rue De La Princesse, 78431 Louveciennes, France (phone) + 33 1 30 08 44 38 (mobile) + 33 6 82 93 14 94 (VoIP) 63044471 jean-marc.philbois@aptar.com NYSE: ATR
Aptar Food + Beverage Understanding the Growth in the Sport Cap market Beverage Packaging Brussels, 2016 news.aptar.com / info.fb@aptar.com
1. Examining the Lifecycle in Sport Closures PLM is the transformation of the Product development
Sport Closure market growth driven by On-the-go growth PET Bottles growth Non CO2 growth + 5.4% CAGR 2015-2020 Flip-Top= + 8.3% CAGR Push-Pull= + 2.6% CAGR Source Euromonitor
Aptar Sport Cap portfolio Timeline 2000 2004 2006 2008 2011 2015 2016 2017 1st flip top In 30/25 1st flip-top closure on the market in PCO 1810 Launch of Original 1810 Launch of Original 30/25 Launch of Original 1881 Launch of Contender Linerless Hotfill in 38mm & 33mm Launch of 1st 1-pce UNO Launch of Original 29/25 Launch of NEW gen. 1-pce Avantage Launch of NEW generation New Light version Original 30/25
Sport Cap Market shares On-The-Go Still drinks In PET bottle Sport cap - in Europe - = up to 10% ms the «Drink From» Dispensing closure 15% MS of still B.water <75cl = Kids drinks = 5% of Juice <50cl 76% MS of Sport Drinks Source Euromonitor
Sport Cap Life cycle
2. Highlighting recent case stories
Sportcap Worldwide NA Asia LATAM EU MEA %SportCap in Still BW 6,9% 0,4% 4,2% 7,3% 3,4% %SportCap in still BW <75cl 8,0% 0,5% 6,2% 15,1% 4,6%
Sportcap Worldwide NA Asia LATAM EU MEA % Sportcap in Juice <50cl 0,5% 0,04% 0% 5,4% 1,6%
Ribena case (UK)
Sportcap Worldwide NA Asia LATAM EU MEA %Sportcap in Sportdrink 5,1% 7,2% 33,2% 76,0% 88,4%
i9 case (Brazil)
Gatorade case (Mexico) - Linerless HotFill closure - Contender M 33mm Mono injected spout for perfect air tight
4Move case (Poland) - 1 Piece Homologated by Krones for Dry aseptic filling (H2O2)
426 miles case (Spain) 38mm sport cap with liner 1st HPP Coldpress juice with a sportcap
3. Considering the new Consumer key Atttributes It s not the strongest, nor the most intelligent that survives. It s the most adaptable to change ~C.Darwin
Consumer key attributes Open to your Choice: Transparency body or Colorful or Bi-color 1Piece affordability or 2Pieces robustness Orifice or «baffle hold» or spillproof Valve 170 active hinge Tear-off band removable 180 active hinge Non removable TE Passing BSDA & EN71-1 1st opening force Visibility TE after opening Pressure resistance (N2) + BEST to have 190 Hinge or lock back «Stay with» H202 & N2 dosing or HF / N2HF
Aptar Portfolio Move One Piece Next generation 2 Pieces? Avantage Sport Cap Inside Sport Cap UNO Sport Cap
Aptar Innnovation Roadmap Stage Gate Product Innovation Process Stage 0 Scoping Briefing & Filter process TG 1 TG 2 TG 3 TG 4 GO GO GO Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Biz case1 Target price Concept Devlopment proto Pilot phase test Biz case 2 tooling Industrial phase TG 5 Branded Product launch Ramp up phase Post Follow.Up/ Project Closing PLM Guardian = New generation 2 Pieces GO GO Original
4. Addressing Future Consumer Needs with Innovation Be thankful for customers who complain you still have an opportunity to make them happy. ~Anonymous
Voice of the Market Addressing the needs Brand Needs + Consumer Needs Differentiation Child Friendly Cost Effective Safe / Hygienic On-the-go convenience Easy to Open Safe / Hygienic Cannot Misplace resealable = Opportunities to Innovate The button bottle! Niah, 5 Jaz, 13 I d say, all you have to do is press. It s all in one, and just like a fun way to open it! It looks very interesting Keira, 10
Launched mid September 2016 in UK Voice of the Market Delivering Innovation Not detachable TE Spill Proof Non removable cap
Voice of the Consumer Aptar consumer studies: 5 years 1000+ consumer opinions 17 closures analysis 400 children and mothers Results: Flip top is the preferred Easy to use Detachable pieces frustrate mothers and kids SimpliSqueeze valve is the leading option for both kids and adults
Spillproof, provides drop less Flow control and precise dispensing Excellent clean cut-off Easy one hand dispensing Allowing convenient top-down packaging
What Consumers Want Truly Drives Packaging Needs Meeting the Needs Through The Ages 86% of UK consumers #1 concern with sport closures is not having it leak even if the cap is not closed properly. Aptar n=250 Eco-Friendly, Creative, Packaging Solutions The market for children s bottled water has a potential size of 52,900 million litres in 2016. Approximately 350 million people worldwide have arthritis. webmd.com On-the-go Convenience & Resealability If a closure is not on top of a bottle when disposed it will not be sorted or recycled. -U.S. Association of Postconsumer Plastic Recyclers Webinar October 27, 2015
Global Responsibility Recycling Friendly RIGHT Weighting Increased Packaging Size Silicone valve with density <1 Stay-with feature
IoT - Smart & REUSABLE?
Aptar Food + Beverage Thank You news.aptar.com / info.fb@aptar.com 8-10 November 2016 - Nuremberg Germany HALL 4 - stand 306