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Food Packaging Technologies SummitHarris E. DeLoach, Jr.

May 8, 2012

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Sonoco Today

2011 2010

Sales $1,977.3 $1,798.5

Base EBIT $191.5 $196.0

2011 2010

Sales $1,892.2 $1,744.0

Base EBIT $138.2 $136.4

2011 2010

Sales $471.4 $477.2

Base EBIT $21.7 $14.2

2011 2010

Sales $158.0 $104.4

Base EBIT $15.2 $17.5

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Changing Business Mix

Global Consumer Strategy

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Sonoco’s strategy targets a shift in the mix of its businesstoward faster-growing consumer-related markets.

Only Total Solutions Provider

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Packaging Design, Innovation and

Artwork Management

Complete Consumer Packaging

Retail MerchandisingSustainabilityand Recycling

Packaging Supply Chain Services

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$250 million+$1 billion+

Brand Size

2011$1.1 billion sales

2005$0.7 billion sales

Corporate Customer GrowthKey New Brands Won Since 2005

Consumption Trends

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Macro Economic Trends Impacting Packaging

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Macro-economic Impacton Packaging Industry

Consumers

High unemployment – 8.1%

Low confidence in political leadership

Spending habits changing – High end

and private label

Customers

High raw material inflation

Cost reduction/substitutions

More CPG consolidation

Retailers

Food inflation, inability to raise prices

Pushing for retail-ready solutions

Private label and store brand acceleration

What are Key Trends We See in Packaging 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

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Packaging Format Changes

Metal to Composite Cans

Composites to Rigid Plastic

Plastic to Flexible Pouch

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A Case Study for Powdered Infant Formula

Product Safety

Regulatory Changes

BPA, mineral oils, solvents, melamine, etc.

Global Food Safety Initiative

Supply Chain Security

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Health and Wellness Products

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87% of Consumer Trying to Eat Healthier

Product Stewardship and Sustainability

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GOAL

A product offering’s interconnected design variables…

…and Sonoco’s goal of consistently improving functionality, reducing cost and minimizing environmental impact!

Design for the Environment

Packaging Sustainability

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Source Reduction

Packaging Sustainability

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Renewable, Recycled content, Recyclability

Packaging Recycling

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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

Company Stewardship

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Sustainability, Citizenship Reducing Footprint

Bifurcation of Consumer Spending

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Sonoco PL packaging sales to $165 million in 2011

(8% of Consumer Packaging sales)

PL Sales 2010

Composite Cans

FlexiblesRigid

Plastics

$150 million $96 million $19 million $35 million

% Division sales 13.5% 5.5% 7.15%

Private Label Growth

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Age-friendly Packaging

Consumer Diversity and Aging Populations

Shelf Presence

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Cold Chain Logistics

E-Commerce and Non-Traditional Retailing

Packaging Customization

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Emerging market influences

Consumer demands changing

Packaging technology must change

Key Takeaways

Questions

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