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CardPak Corporate Overview


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CardPak Corporate Overview

  1. 2. Card Pak History Four Decades of Growth <ul><li>1965 Founded as a spin-off of American Packaging Corporation </li></ul><ul><ul><ul><li>Skinboard manufacturing </li></ul></ul></ul><ul><ul><ul><li>1 st year sales reached $750,000 </li></ul></ul></ul><ul><li>1974 Installed 5-color Aurelia Omsca printing press </li></ul><ul><ul><ul><li>Enters Blister Card Market </li></ul></ul></ul><ul><li>1990 Sales reached $10 Million </li></ul><ul><li>1991 Installed 6-color Komori printing press </li></ul><ul><li>1997 Installed 5-color Komori printing press </li></ul><ul><ul><ul><li>Bobst Die-Cutter also installed </li></ul></ul></ul><ul><li>1998 Moved all manufacturing and office personnel to new location which is where we operate today </li></ul><ul><ul><ul><li>Installed 6-color Komori printing press </li></ul></ul></ul><ul><ul><ul><li>Installed 2 nd Bobst Blanker Die-Cutter </li></ul></ul></ul><ul><li>Sales reached $15 Million </li></ul>
  2. 3. Card Pak History Four Decades of Growth (cont.) <ul><li>2000 Sales reached $20 Million </li></ul><ul><li>2003 Installed 8-color Komori printing press </li></ul><ul><li>2004 Sales reached $25 Million </li></ul><ul><li>2006 Launched new Eco Logical Line of Packaging ™ for sustainability </li></ul><ul><li>2007 Implemented Corporate Sustainability Strategy </li></ul><ul><ul><ul><li>Becomes member of the Sustainable Packaging Coalition </li></ul></ul></ul><ul><ul><ul><li>Invited exhibitor at Wal-Mart’s Sustainable Packaging Exposition (2 years) </li></ul></ul></ul><ul><ul><ul><li>Developed and Hosted 1 st Annual Environmental Expo in conjunction with Pack Expo </li></ul></ul></ul><ul><ul><ul><li>Won Paperboard Packaging Council Awards (3) for EcoLogical Line of Packaging </li></ul></ul></ul><ul><li>2008 On-Going Corporate Sustainability Strategy </li></ul><ul><ul><ul><li>New plant lighting project </li></ul></ul></ul><ul><ul><ul><ul><li>Energy savings equivalent to 600 barrels of oil annually </li></ul></ul></ul></ul><ul><ul><ul><li>Won PrintAction Environmental Printing Awards (Toronto, Canada) </li></ul></ul></ul><ul><ul><ul><ul><li>Gold Award – Packaging Project: GE CFL Light Bulbs </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Silver Award – Printing: GE CFL Light Bulbs </li></ul></ul></ul></ul>
  3. 4. Card Pak Manufacturing Overview <ul><li>Prepress </li></ul><ul><ul><li>Digital proofing system </li></ul></ul><ul><ul><li>Computer-to-Plate technology </li></ul></ul><ul><li>Printing </li></ul><ul><ul><li>40” RP 6-color / 1-color UV backside Komori Lithrone Sheet-Fed Offset with tower aqueous coater (1998) </li></ul></ul><ul><ul><li>40” RP 8-color / 1-color UV backside Komori Lithrone Sheet-Fed Offset with tower aqueous coater (2003) </li></ul></ul><ul><li>Coating </li></ul><ul><ul><li>55” Steinemann Inframat off-line coater </li></ul></ul><ul><li>Die Cutting </li></ul><ul><ul><li>In-house laser die manufacturing </li></ul></ul><ul><ul><li>3 Bobst SP104-ER Blankers </li></ul></ul><ul><li>Folding / Gluing </li></ul><ul><ul><li>International EG006 </li></ul></ul><ul><ul><li>International 6F </li></ul></ul>
  4. 5. Card Pak Pak Seal™ Coating Advantages <ul><li>Faster dwell times </li></ul><ul><li>Greater bond strength </li></ul><ul><li>Consistent sealing performance </li></ul><ul><li>Excellent for recycled blisters </li></ul><ul><li>Adaptable to all sealing equipment </li></ul><ul><li>Only backseal coating that seals card to card and card to blister (frontside and backside) </li></ul><ul><li>FDA compliant and EPA approved </li></ul>
  5. 6. Card Pak Incoming Material Inspection Protocol <ul><li>Test board for sealability before the raw material enters production </li></ul><ul><ul><li>Work Instruction (WI) 1022 used </li></ul></ul><ul><ul><li>Board that fails is quarantined and the supplier is notified for replacement orders </li></ul></ul><ul><ul><li>Certificates of Authenticity (COA) required for all incoming board lots </li></ul></ul><ul><ul><li>Measurements of ZDT and IGT Blister are reviewed in relation to sealability </li></ul></ul><ul><ul><ul><li>Verified on Seal Master 500 </li></ul></ul></ul><ul><ul><li>All testing values set by Card Pak based on individual customer requirements </li></ul></ul><ul><li>COA’s are required for all incoming ink and coating orders </li></ul><ul><ul><li>WI 2017 used </li></ul></ul>
  6. 7. Card Pak ISO Certifications <ul><li>ISO 9001:2002 – Quality </li></ul><ul><ul><li>Recertified November 5, 2006 </li></ul></ul><ul><ul><li>Expires November 4, 2009 </li></ul></ul><ul><ul><li>Last internal audit in March 2007 </li></ul></ul><ul><ul><ul><li>Passed with no nonconformance issues </li></ul></ul></ul><ul><li>ISO 14001:2004 – Environmental </li></ul><ul><ul><li>Surveillance audit re-approved October 25, 2007 </li></ul></ul><ul><ul><li>Valid thru October 31, 2009 </li></ul></ul><ul><ul><li>Several environmental customer audits passed </li></ul></ul>
  7. 8. Card Pak Future Capital Considerations <ul><li>Narrow Web Flexography Hybrid Printing Press </li></ul><ul><ul><li>In-line laminating </li></ul></ul><ul><ul><li>In-line UV inks and coatings </li></ul></ul><ul><ul><li>In-line rotary die-cutting </li></ul></ul><ul><ul><li>In-line water based and solvent based coatings </li></ul></ul>
  8. 9. Card Pak Products <ul><li>Blister Cards </li></ul><ul><li>Folding Cartons and Sleeves </li></ul><ul><li>Clamshell Inserts </li></ul><ul><li>Skinboard </li></ul><ul><li>Specialty Displays </li></ul><ul><li>Pak Seal ™ Coating </li></ul><ul><li>Eco Logical Line of Packaging ™ </li></ul><ul><ul><li>Club Pak ™ - The Sustainable Alternative to Clamshells </li></ul></ul><ul><ul><li>Sustain Pak ™ - The Recycled Alternative to Clamshells </li></ul></ul>Products packaged in Club Pak ™ and Sustain Pak ™ designs
  9. 10. Card Pak’ s Products Blister Cards and Inserts <ul><li>Proprietary Pak Seal ™ coating and aqueous coatings </li></ul><ul><li>Dedicated or combination production orders </li></ul><ul><ul><li>4/4 color runs </li></ul></ul><ul><ul><li>Xpress runs with 4 day turnaround </li></ul></ul><ul><li>Up to 8-color front side plus 1 color UV back side </li></ul><ul><li>Stock paperboard and custom orders </li></ul><ul><ul><li>SBS and Recycled </li></ul></ul>
  10. 11. Card Pak’ s Products Folding Cartons and Glued Sleeves <ul><li>Various paperboard and micro-flute styles </li></ul><ul><li>Dedicated or combination production orders </li></ul><ul><ul><li>4/4 color runs </li></ul></ul><ul><ul><li>Xpress runs with 4 day turnaround </li></ul></ul><ul><li>Up to 8-color front side with aqueous coating plus 1 color UV back side </li></ul><ul><li>Stock paperboard and custom orders </li></ul><ul><ul><li>SBS and Recycled </li></ul></ul>
  11. 12. The Impact of Wal-Mart <ul><li>Stores: >6,500 Worldwide </li></ul><ul><li>Suppliers: >60,000 </li></ul><ul><li>Customers: 176 Million / Week </li></ul><ul><li>Wal-Mart’s Ultimate Sustainability Goals </li></ul><ul><ul><li>To Be Supplied by 100% Renewable Energy </li></ul></ul><ul><ul><li>To Create Zero Waste </li></ul></ul><ul><ul><li>To Sell Products That Sustain Our Resources and Environment </li></ul></ul>
  12. 13. Wal-Mart Approach to Sustainable Packaging <ul><li>Packaging Sustainable Value Network Goal </li></ul><ul><ul><li>Eliminate Use of Materials Harmful to Human Health and the Environment </li></ul></ul><ul><ul><li>Use 100% Renewable Materials </li></ul></ul><ul><ul><li>Reduce Packaging Costs by 5% </li></ul></ul><ul><li>First Step: Wal-Mart Packaging Sustainability Scorecard </li></ul><ul><ul><li>Weighted, Value-based Analysis by SKU of Packaging Materials and Practices </li></ul></ul><ul><ul><li>Transparency to Drive Competitive Improvement Among Suppliers </li></ul></ul><ul><ul><li>Launched to 2,000 Private Label Suppliers November 2006 </li></ul></ul><ul><ul><li>Will Roll Out to >60,000 Global Suppliers February 2007 </li></ul></ul><ul><ul><li>Will Roll Out to Entire Supply Chain February 2008 </li></ul></ul>
  13. 14. Wal-Mart Sustainable Packaging Exposition <ul><li>Sam’s Club – GE Success </li></ul>
  14. 15. Packaging Industry Sustainable Strategy <ul><li>Sustainable Packaging: </li></ul><ul><ul><li>maximizes the use of renewable or recycled source materials </li></ul></ul><ul><ul><li>is manufactured using clean production technologies and best practices </li></ul></ul><ul><ul><li>is physically designed to optimize materials and energy </li></ul></ul><ul><ul><li>is effectively recovered and utilized in biological and/or industrial cradle to cradle cycles </li></ul></ul><ul><ul><li>meets market criteria for performance and cost </li></ul></ul><ul><ul><li>is beneficial, safe & healthy for individuals and communities throughout its life cycle </li></ul></ul>* Definitions from Sustainable Packaging Coalition (
  15. 16. Paperboard Industry Sustainable Facts <ul><li>The forest products industry plants 1.7 million trees a day, exceeding the number of trees harvested </li></ul><ul><li>1 acre of trees absorbs 6 tons of carbon dioxide and emits 4 tons of oxygen </li></ul><ul><li>The U.S. forest inventory has increased 39% since 1952 </li></ul><ul><li>Currently forests cover 33% or 747 million acres of the U.S. </li></ul><ul><li>Producing a ton of paper today uses 24% less energy than it did in the early 1970’s. </li></ul><ul><li>Paper and paperboard accounted for more than 75% of all packaging material recovered in 2005 </li></ul>* Source: American Forest and Paper Association (AF&PA)
  16. 17. Paperboard Industry Sustainable Facts (cont.) <ul><li>The industry recovers 50% of paper used in the U.S. </li></ul><ul><li>According to the EPA, paper accounted for 57% of all municipal solid waste recovery </li></ul><ul><li>Recovered fiber from recycling now comprises 37% of the domestic raw material supply </li></ul><ul><li>The industry has set a goal to reduce greenhouse gas emissions by 12% by 2012 </li></ul><ul><li>The U.S. paper industry had invested an estimated $10 billion in new recycling capacity </li></ul>* Source: American Forest and Paper Association (AF&PA)
  17. 18. Card Pak Sustainable Strategy <ul><li>CardPak Sustainable Packaging </li></ul><ul><ul><li>CardPak uses 100% paperboard materials (renewable resource) in manufacturing applications </li></ul></ul><ul><ul><li>CardPak is ISO 14001:2004 certified for environmental management systems </li></ul></ul><ul><ul><li>CardPak’s Pak Seal ™ coating is EPA approved and FDA compliant </li></ul></ul><ul><ul><li>CardPak’s Club Pak ™ and Sustain Pak ™ products eliminate over 60% of plastic material when replacing clamshells </li></ul></ul><ul><ul><li>CardPak’s Sustain Pak ™ utilizes 100% recycled plastic and paperboard materials </li></ul></ul><ul><ul><li>CardPak’s products are 100% recyclable where facilities exist in community collections and industrial reclamation </li></ul></ul>
  18. 19. Our Opportunity: The Perfect Storm <ul><li>Consumer Knowledge/Embracing of Environmental issues </li></ul><ul><li>Wal-Mart Sustainable Packaging Initiatives </li></ul><ul><li>Supply Chain Pricing Pressures </li></ul><ul><li>Fluctuating Oil Prices </li></ul><ul><li>Wrap Rage – customers hate plastic clamshells </li></ul>
  19. 20. Card Pak’ s Eco Logical Line of Packaging™ Club Pak ™ The Sustainable Alternative to Clamshells <ul><li>Comparable in strength & security to clamshells </li></ul><ul><li>100% renewable & recyclable materials for Sustain Pak ™ </li></ul><ul><li>Safe & easy opening designs </li></ul><ul><li>Significant reduction in plastic materials (up to 85%) </li></ul><ul><li>Material cost savings opportunities </li></ul><ul><li>Greater shelf impact graphics </li></ul>
  20. 21. Card Pak’ s Eco Logical Line of Packaging™ Sustain Pak ™ The Recycled Alternative to Clamshells <ul><li>Strong graphics and information billboard </li></ul><ul><li>Dispenses easily with perforated opening feature </li></ul><ul><li>Stores product safely until needed </li></ul><ul><li>Reduces 60%+ of plastic materials </li></ul><ul><li>Substitutes SBS with recycled paperboard </li></ul><ul><li>Converts PVC to RPET blisters </li></ul>
  21. 22. Card Pak ’s Sustainable Packaging Strategy <ul><li>Existing Clamshell </li></ul><ul><li>Card Pak ’s Club Pak ™ Concept </li></ul>
  22. 23. Club Pak ™ / Clamshell Direct Comparison Clamshell Plastic 71.3 grams Paper 15.3 grams Total 86.6 grams ClubPak ™ Plastic 27.6 grams Paper 33.7 grams Total 61.3 grams The ClubPak™ solution offers an average 25 to 30% reduction in packaging materials by weight and reduces plastic content by over 60%
  23. 24. The Club Pak ™ Advantage Analysis performed by Environmental Packaging International (EPI) dated February 14, 2007 PVC Package System ClubPak™ Package System Energy Use (BTUs from production) 11,377 2,244 Greenhouse Gases (grams of CEs 2 - production, recycling, disposal) 138 71 Material Inputs (grams of Raw Material) 308 193 Chemical “Bad Actors” (EPI rating from 10 US Gov. lists) 2,129 29 Int’l Packaging Fees (9 largest markets with fees) $0.0610 $0.0159 Est. Wal-Mart Score (2/07 estimate on draft scorecard) 1.24 2.05
  24. 25. Environmental Packaging Measurement Tools <ul><li>Card Pak Currently </li></ul><ul><ul><li>Environmental Packaging International (EPI) </li></ul></ul><ul><ul><li>Wal-Mart Stores Inc. – Package Modeling </li></ul></ul><ul><ul><li>Custom Program with Affinity Consultants – Sustainable Solutions for a Changing World </li></ul></ul><ul><li>Other Available Considerations </li></ul><ul><ul><li>USEPA’s ReCon Tool </li></ul></ul><ul><ul><li>US-CTS Greenhouse Gas Calculator </li></ul></ul><ul><ul><li>Leonardo Academy’s Cleaner and Greener Emission Reduction Calculator </li></ul></ul>
  25. 26. Card Pak’ s Sustainable Packaging Strategy <ul><li>Club Pak ™ and Sustain Pak ™ Marketplace Successes </li></ul>
  26. 27. National Media Coverage
  27. 28. Club Pak ™ / Sustain Pak ™ Definitions <ul><li>Club Pak 2 – 2 piece structure with trapped blister   </li></ul><ul><li>Club Pak 3 – 3 piece structure with front card, insert, and back card with trapped blister  </li></ul><ul><li>Club Pak HD1 – 2 piece structure with corrugated front card and paperboard back card with trapped blister </li></ul><ul><li>Club Pak HD2 – 2 piece structure with both cards made of corrugated material with trapped blister </li></ul><ul><li>Sustain Pak 2, 3, HD1, and HD2 are all similar to Club Pak styles with the exception that all paperboard and blisters materials are 100% recycled and recyclable where facilities exist </li></ul>
  28. 29. Standup Club Pak Package * Patent pending
  29. 30. Card Pak Highlights <ul><li>Full suite of paperboard products and services </li></ul><ul><ul><li>Blister cards, folding cartons, inserts, and displays </li></ul></ul><ul><ul><li>Unique manufacturing formats for dedicated runs and low cost rush demands </li></ul></ul><ul><ul><li>Complete prepress and graphic capabilities </li></ul></ul><ul><li>Top 3 volume manufacturer of traditional carded packaging </li></ul><ul><li>Positioned in high quality / high growth markets </li></ul><ul><ul><li>Cosmetic / Personal Care </li></ul></ul><ul><ul><li>Pharmaceutical / Healthcare </li></ul></ul><ul><ul><li>Electronics / Media </li></ul></ul><ul><ul><li>Household / Hardware / Automotive </li></ul></ul>
  30. 31. Card Pak Highlights (cont.) <ul><li>Innovative Product Development </li></ul><ul><ul><li>Eco Logical Line of Packaging ™ </li></ul></ul><ul><ul><ul><li>Club Pak ™ / Sustain Pak ™ </li></ul></ul></ul><ul><li>Advanced manufacturing strategy </li></ul><ul><ul><li>Lean Manufacturing System established 2006 </li></ul></ul><ul><ul><li>ISO 9001:2002 / ISO 14001:2004 </li></ul></ul><ul><ul><li>Incoming material testing / outgoing seal testing (Seal Master 500) </li></ul></ul><ul><ul><li>Customer field engineering support for machinability and seal testing </li></ul></ul>
  31. 32. Next Steps and Follow-Up <ul><li>____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ </li></ul>