© 2007 E&S Global 1 E&S Global

© 2007 E&S Global 2 E&S Global What Is Happening? Consumer Focused Age appropriate Bi-Lingual Ethnic Foods Convenience Health/Wellness Safety/Tamper Evident Sustainability and Minimization Value Communication Flavor Catchers Physiology vs. Psychology Colors Shapes Customer Focused Channel specific Chain specific

© 2007 E&S Global 3 E&S Global Consumer Focused Age Appropriate – mainly focused on the aging of the US population 80% of disposable income is over 55 years of age So what does this mean? Larger fonts – easier to read Larger caps – easier to open Serving size – dinner for two or one – not four to six “Traditional” now has a new meaning

© 2007 E&S Global 4 E&S Global Consumer Focused

© 2007 E&S Global 5 E&S Global Consumer Focused Bi-Lingual Hispanic origin is the fastest growing ethnic segment Largest minority in the US Closing the gap on all non-Latino groups Need to communicate on shelf and at shelf Ethnic Products Flavors and spices from all over the world Influx of various ethnic groups has led to expanding cuisine New aisles and products to hold all of the merchandise “Traditional” consumers looking for flavor excitement

© 2007 E&S Global 6 E&S Global Convenience Balanced by a return to eating at home – means convenience at many levels

© 2007 E&S Global 7 E&S Global Convenience Ready to Eat Grab and go Single serve “Eating Friendly” packaging Portion control Inner packages Variety packs Lunchables Healthy snacks Ready to Heat Microwave ready Just add water (to original package) Dual ovenable Microwave reflector material – crisp crust or outer layer

© 2007 E&S Global 8 E&S Global

© 2007 E&S Global 9 E&S Global Health and Wellness Health Low Fat Trans Fat Free Gluten Free Sugar Free Fat Free Allergen Free Peanut Dairy Egg Wellness Organic All Natural Whole Wheat Oat based Heart Healthy Vitamin Water

© 2007 E&S Global 10 E&S Global

© 2007 E&S Global 11 E&S Global Safety and Tamper Evident Balance between ease of opening and safety Redundant systems Sealed box Plastic sealed bottle Foil sealed bottle top Nitrogen flush Counterfeiting – damage to brand equity Taken for granted in the US – but should it be?

© 2007 E&S Global 12 E&S Global Safety and Tamper Evident – Australia Film wrappers Blister or strip packs Bubble packs Heat shrink bands or wrappers Pouches, sachets or form fill seal packs Container mouth inner seal Sealed two-piece capsules Tape seals Breakable caps Tear away caps Sealed metal tubes Sealed plastic laminate tubes Cans In-built tamper evident controls (color change) Very strong foundation of protection!

© 2007 E&S Global 13 E&S Global Sustainability and Minimization Sustainability - Recycling Paperboard Cardboard and corrugate Plastic bottles Plastic products/resin Grocery bags and sacks New corn-based resins Cereplast Biocom Durability questions

© 2007 E&S Global 14 E&S Global Sustainability and Minimization Minimization Glass to PET Box to Bag Box elimination Outer packaging – shrinking and/or disappearing Recycling

© 2007 E&S Global 15 E&S Global Value Communication Proper design for value position “Cheap” looking labels can not be on premium products Great design can exist in the price and value tier Be wary of over promising on quality Be wary of de-valuing high quality and innovative packaging Over engineering will not pay dividends Packaging can be a competitive advantage

© 2007 E&S Global 16 E&S Global

© 2007 E&S Global 17 E&S Global Flavor Catchers Quick food use to always mean poor taste New technology can help trap flavor Varying substrates can keep texture as it should be Opportunity to vary heating and texture with innovative packaging Resins, vapor barriers, crisping technology – all play a role in improving overall flavor Goal – quick food the consumer enjoys

© 2007 E&S Global 18 E&S Global

© 2007 E&S Global 19 E&S Global Physiology vs. Psychology Physiology – shape impacts image and value Innovative shapes earn higher sales (quality expectations must be met) Private label tends to follow – not very innovative Manufacturer/Retailer partnerships are necessary to change this Customers (retailers) are wary of the very new Psychology – color and other triggers grab attention Primary vs. Pastel Variation on shelf Non-linear design Shelf configuration Link use to emotion Children Pets Seniors Nostalgia

© 2007 E&S Global 20 E&S Global

© 2007 E&S Global 21 E&S Global Customer Focused Channel Specific Club packs Co-branding Multi-packs/Band-packs Dollar items Gift packs Co-marketing opportunities Chain Specific Size to price point Exclusive relationships Movie based marketing New item or pack introduction as “Test Market” Character licensing

© 2007 E&S Global 22 E&S Global Costco Target Kroger Walmart 7-Eleven Dollar General

© 2007 E&S Global 23 E&S Global Conclusions Consumers More savvy than ever More time pressed than ever Understand their needs Understand their triggers Design product to entice their senses Design product to appeal to their lifestage Do not hold onto trends too long Work today for five years out Customers Spend time with the innovators Build relationships with the visionaries Invest resources in the groups who will grow for the long term Deliver to them consumer insights – and your solutions Remember – packaging is really tomorrow’s garbage!!