BEVERAGE PERSONALIZATION Impact on Processing and Packaging Systems Food Processing Suppliers Association Beverage Council December 17, 2014

“Personalization” of Beverages Personalized Niche Products vs. Sell It Low, Stack It High 5 Products, 80% of the Volume Theory of the Long Tail Narrowly Targeted Goods What are the challenges? More SKU’s Smaller runs Variety in packaging Ingredient handling Equipment constraints Technical expertise Financial constraints

Sell It Low, Stack It High 5 Products, 80% of the Volume

Theory of the Long Tail

Narrowly Targeted Goods

What are the challenges? More SKU’s Smaller run sizes, more changeovers, frequent CIP’s, yield loss, downtime Variety in packaging Bottles, caps, labeling, flexible; providing a “unique” look Ingredient handling Organic, Allergen, Veggies, Whole grains, Protein, Colors/Flavors Storage, Sourcing, Traceability Equipment constraints Viscosity, Particulates, Mixing, Heat Exchangers, Filling Technical expertise More products and more equipment to learn Financial constraints If you build it, will they come?

Opportunities Shorter CIP and Sanitation Quick changeover / easy adjustments / dial indicators and markings Improved Equipment Layout – Access points, single-sided changeovers Easier to use Technical Manuals Video training materials Enhanced documentation From the Lab to the Shop Floor Unique products bring unique challenges What about labeling requirements, food safety, and cost Resources for folks that are “new” to the industry

Opportunities Flexible, robust equipment Test facilities or demo units Smaller scale equipment Modular / plug-n-play Finance or lease to own