PresentingCheerpack

Point of Difference Packaging

Portavin

First Oenovation Day May 13, 2008

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Cheerpack

“Point of Difference Packaging”

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What is a Cheerpack?

• What is a Cheerpack?

– Cheerpacks are a flexible pouch for packaging liquid food and beverage products. However, they differ in important ways from a standard doypack flexible pouch.

– Cheerpacks have an integral reclosable, tamper evident cap and straw.

• Two Styles are produced

– SUP

– Bottom Gusset

– Shelf Impact

– Block Bottom, Side Gusset

– The Classic Cheerpack

– Compact and Efficient

• Size range

– Cheerpacks can be from 40ml to 1000ml

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Cheerpack Features / Sustainable Advantages

• Features of the Cheerpack

– Lower all-round carbon footprint

– Lower landfill component

– Reclosable

– Tamper Evident Cap

– Lightweight

– High Strength

– SHELF IMPACT

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Cheerpack Wine Packaging – Sustainability

• Environmental Issues

– Need to consider more environmentally efficient ways to move wine other than glass

– Growing consumer concern about the environment.

• Wineries trying to reduce packaging and transport costs

– Retail pressure on costs and reduction in packaging ( carbon footprint)

– Carbon footprint – Good Citizens.

• Trends toward Sustainability

– Consumers now picking and choosing from “green “options.

– Ethical minded consumers will choose Cheerpack as its waste takes up little space and a much lower carbon footprint.

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Glass - Cheerpack

• Glass -

– Glass will never be replaced as the main container for wine !

– Glass is the traditional and best transporter for wine

– Visibility

• Cheerpack –

– For environmentally conscious consumer

– For range extensions, to support glass

– For certain market groups only

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Life Cycle Analysis - Cheerpack vs Glass

• LCA conducted to show where Cheerpacks have a place for the environmentally conscious.

• LCA conducted by PIRA

– CML2 Baseline 2000 impact methods used.

• Waste Generated ( including filling and damage en route)

– 750ml Glass bottle – 35%

– 750 ml Cheerpack – 2%

• Resource Depletion ( minerals and fossil fuels)

– 750 ml Glass bottle – 100%

– 750 ml Cheerpack – 19%

• Global Warming Impact- Greenhouse Gases emitted (GWP100)

– 750ml Glass bottle – 100%

– 750 ml Cheerpack – 12%

• Total Environmental Impact – 100% is effect score– 750 ml Glass bottle – 100%

– 750 ml Cheerpack – 18%

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Cheerpack Shelf Life

• Laminate structures used in Cheerpack manufacture provide excellent barriers in both Oxygen and Moisture.

• Shelf life analysis indicate shelf life expectation of > 12 - 24 months for Cheerpack

• Cheerpack Structure

– 12 um Polyester / 9um Foil / 15 um Nylon / 80um Polyethylene

– MVTR = < 0.1 - grm/m2/24 hrs

– OTR = < 0.1 - cc/m2/24 hrs @ 23 degrees C and 0% RH

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Alternative Wine Packaging – Why?

• Further growth in “casual, at home and recreational drinking” forecast for the future.

– Baby boomers retiring

• Convenience and Choice

– Greater acceptance of screw cap type openings on wine

– 2003 only 41% acceptance – 2006 now 70% acceptance

– Trend towards Simplicity

– Easy lifestyle without hunting for a corkscrew, uncomplicated enjoyment in many lifestyles.

• Motivation of Wine Purchase decisions – Consumer

– “ I need a value for money wine that is in easy to use convenient packaging that suits my lifestyle for a specific relaxed occasion. I want to drink the wine now”

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Why Cheerpacks for Wine

• Environmentally Friendly( Recycling: Less space in garbage and landfill. Less emissions with production and transport.)

• Unique, modern, futuristic and eye catching

• Compact, less packaging

• Shorter chilling period

• Non breakable – very portable and easy to carry, sturdy

• Less weight due to absence of box and lighter than glass.

• Great for recreational activities, such as BBQs, boating, events, camping, poolside.

• Tamper proof caps – User friendly caps compared to BIB taps

• Cooler and Fridge friendly, does not disintegrate in water

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International Cooperation

• Global Technology Base

– Product R&D conducted by Hosokawa Yoko Company in Japan and by Gualapack Company in Italy

– Patented packaging systems

– Machinery designed, developed and manufactured by Gualapack

– A dedicated division to support the filling processes for specific products

– Global group of companies with Cheerpack licenses ensure international customers receive the support they require

– Oceania is supported by Metalprint Australia and Amcor Flexibles as exclusive distributor of Cheerpack in Australasia

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Manufacture of Cheerpacks

• Manufactured Globally

– 6 manufacturing plants

– Producing 1.3 Billion pouches per annum.

• Oceania

– Product is manufactured by Secure (Panyu) Packaging in Guangzhou

– ISO 9001

– UKAS Quality System Certified

– 350 million pouches per year

– A new sister plant commissioned in Nanjing, China – July 2005

– Operates under Hosokawa Yoko Japan Quality System

– Efficient transport via direct access to Hong Kong

– Letter of intent signed for Amcor exclusivity to trade product in Australia and New Zealand