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Food Packaging Technologies Summit

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Presentation by Harris DeLoach, Sonoco Chairman and CEO, at the Food Packaging Technologies Summit in May 2012

Presentation by Harris DeLoach, Sonoco Chairman and CEO, at the Food Packaging Technologies Summit in May 2012

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  • 1. Food PackagingTechnologies SummitHarris E. DeLoach, Jr.May 8, 2012 1
  • 2. Sonoco Today 2011 2010 2011 2010 2011 2010 2011 2010Sales $1,977.3 $1,798.5 Sales $1,892.2 $1,744.0 Sales $471.4 $477.2 Sales $158.0 $104.4Base EBIT $191.5 $196.0 Base EBIT $138.2 $136.4 Base EBIT $21.7 $14.2 Base EBIT $15.2 $17.5 2
  • 3. Changing Business Mix 3
  • 4. Global Consumer StrategySonoco’s strategy targets a shift in the mix of its businesstoward faster-growing consumer-related markets. 4
  • 5. Only Total Solutions Provider Packaging Design, Innovation and SustainabilityArtwork Management Retail Merchandising and Recycling Complete Consumer Packaging Supply Packaging Chain Services 5
  • 6. Corporate Customer GrowthKey New Brands Won Since 2005 2011 $1.1 billion sales Brand Size $1 billion+ $250 million+ 2005 $0.7 billion sales 6
  • 7. Consumption Trends 7
  • 8. Macro Economic Trends Impacting Packaging Macro-economic Impact on Packaging Industry  High unemployment – 8.1%  Low confidence in political leadership Consumers  Spending habits changing – High end and private label  High raw material inflation Customers  Cost reduction/substitutions  More CPG consolidation  Food inflation, inability to raise prices Retailers  Pushing for retail-ready solutions  Private label and store brand acceleration 8
  • 9. What are Key Trends We See inPackaging Technology Packaging Format Changes Product Safety and Security Sustainability Bifurcation of Consumer Spending Consumer Convenience and Aging Populations Improving Shelf Presence E-Commerce and Non-Traditional Retailing Packaging Customization 9
  • 10. Packaging Format ChangesA Case Study for Powdered Infant Formula Metal to Composite Cans Composites to Rigid Plastic Plastic to Flexible Pouch 10
  • 11. Product Safety Regulatory Changes  BPA, mineral oils, solvents, melamine, etc. Global Food Safety Initiative Supply Chain Security 11
  • 12. Health and Wellness Products87% of Consumer Trying to Eat Healthier 12
  • 13. Product Stewardship and SustainabilityDesign for the EnvironmentA product offering’s interconnected design variables… GOAL …and Sonoco’s goal of consistently improving functionality, reducing cost and minimizing environmental impact! 13
  • 14. Packaging SustainabilitySource Reduction 14
  • 15. Packaging SustainabilityRenewable, Recycled content, Recyclability 15
  • 16. Packaging Recycling  Grow U.S. collections 10% to 2 million tons in 2012  Greenville, S.C., MRF acquisition  Charleston, S.C., mini-MRF development  Onslow County, N.C., MRF 16
  • 17. Company StewardshipSustainability, Citizenship Reducing Footprint 17
  • 18. Bifurcation of Consumer SpendingPrivate Label Growth Sonoco PL packaging sales to $165 million in 2011 (8% of Consumer Packaging sales) PL Sales Composite Rigid Flexibles 2010 Cans Plastics $150 million $96 million $19 million $35 million % Division sales 13.5% 5.5% 7.15% 18
  • 19. Consumer Diversity and Aging PopulationsAge-friendly Packaging 19
  • 20. Shelf Presence 20
  • 21. E-Commerce and Non-Traditional RetailingCold Chain Logistics 21
  • 22. Packaging Customization 22
  • 23. Key Takeaways Emerging market influences Consumer demands changing Packaging technology must change 23
  • 24. Questions 24

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