The Line On Contract Pouch Production & Packaging.

Today’s Discussion Points Review of Contract Packaging Consumer / Retailers Perspective Pouch Market Dynamics Capacity Statistics Available Equipment Market Trends Summary

Robert’s Product Platforms

Robert’s Credentials Contract Packaging Division - 34 Years of Contract Packaging Experience - Bottles - Cartons - Stand-Up Pouches - Our Core Competency Machinery Manufacturing Division - World Class Pouch Machine Manufacturing - Rollstock & Pre-Made Pouch Formats - Continuous Motion / Highly Efficient - Our Production floor is the best R & D environment Continuous Motion offers “Superior Productivity”

What is Contract Packaging? The outsourcing of the physical placement of products into packaging components.

Why is Contract Packaging Growing? Special Expertise Cost Effectiveness Quality New Package Formats

A Contract Packager Should Provide: High Quality Standards Experience Strong Ethics Competitive Costs Excellent Communication Controls / Processes / Procedures Financial Strength Flexibility with Line Time Convenient Location

Why do Companies Contract Package? Costs….Low Capital Speed to Market Special Expertise

Contract Packaging Market 400 Contract Packagers 80 / 20 Rule Few Offer Stand-Up Pouch Packaging Fewer Offer Automated Stand-Up Pouching Pre-Made Fill / Seal Equipment

Global Stand-Up Pouch Consumption Million Billion Billion Source: Brand Packaging

New Product Introductions Source: The Wall Street Journal / Marketing Intelligence Service

More Contract Packaging Opportunities? 31,000 New Product Introductions in 2000 Substantial Stand-Up Pouch Market Growth Market Differentiation Giving Consumers what they want

How important is packaging to Retailers & Consumers? 98% of Retailers feel zippered packaging positively changed the products and created stronger consumer demand. 59% of Retailers feel stand-up pouch packaging positively changed the products and created stronger consumer demand. 66% of Consumers feel that packaging innovations are one of the most important features a product has to offer and is ranked third, behind flavor (1) and size (2). 67% of Consumers state that zippered packaging is very important to extremely important in their purchase decisions. Source: Promo Edge 3/99

What type of Pouching Equipment is Available? Rollstock High Speed Horizontal Continuous Motion Rollstock Horizontal Intermittent Motion Rollstock Vertical Intermittent Motion with transverse zippers Pre-Made High Speed Horizontal Continuous Motion Pre-Made Semi-Automated Intermittent Motion

Current & Future Contract Packaging Stand-Up Pouch Capacity 1993 = 15.0 Million Pouches 1998 = 97.5 Million Pouches 2001 = Million Pouches 2003 = Million Pouches Robert’s Packaging Estimates

Machinery Overview High Speed Continuous Motion Quick Changeover Low Scrap High Productivity Robert’s CFS- Series / Pre-Made Machine Robert’s C - Series / Rollstock Machine

Stand-Up Pouch Contract Packaging Market Trends More Bells & Whistles Sliders Pre-Made Pouches U-Pack Shaped Pouches Larger Formats Exploding Markets Pet Treats / Foods Confectionery / Nuts Salty Snacks Dairy Powders Cookies & Crackers Liquids

Stand-Up Pouch Contract Packaging Market Trends - Sliders Minigrip/Zip-Pak Pactiv Pliant Presto Products Minigrip/Zip-Pak Pactiv Pliant Presto Products Robert’s Contract Packaging Division Currently in Trials / Commercial by 4th Qtr. 2001

Stand-Up Pouch Contract Packaging Market Trends - Shapes / Contoured Pre-Made Shaped / Contoured Pouches run on Robert’s CFS- Series of Pouching Equipment

Stand-Up Pouch Contract Packaging Market Trends - Side Gusseted Pre-Made Side Gusseted Pouches run on Robert’s CFS-Series of Pouching Equipment.

C-Series Rollstock Continuous Motion Benefits Increased Run Speeds Low Scrap Enhanced Dwell Time Extensive Product Diversity Low Maintenance High Net Output Value Added/Rapid Changeover Flexibility

CFS-Pre-Made Continuous Motion Benefits Various Shaped, Contoured, Side Gusset Zippered Pouches Increased Run Speeds Low Scrap Enhanced Dwell Time Extensive Product Diversity Low Maintenance High Net Output Value Added/Rapid Changeover Flexibility

Summary Considerations when Contract Packaging –Expertise in Stand-Up Pouches 10 Billion Global Pouch Market by 2003 & Contract Packaging Capacity at 500 Million Features –Zippers –Sliders –Shaped & Contoured –Side Gussets Types of Pouching Equipment / Benefits of Continuous Motion For additional Information Contact Robert’s Packaging