Improving the sustainability of Regional BrewersCanadean International Beer ConferenceMay 14, 2013

Agenda

� Who we are ?

• O-I and Sustainability

� Partnership Case Study

• Marks & Spencer’s Plan A & Somerset Waste Partnership

� Right-weighting

The information contained herein constitutes proprietary confidential trade secret information of Owens-Brockway

Glass Container Inc., and is to be accepted only subject to that understanding. It is to be kept confidential and

not copied, used, or conveyed to others without Owens-Brockway Glass Container Inc.’s written authorization.

• Sustainable Right-weighting to support the customer

� Summary – Key points

2

O-IThe World’s Leading Glass Packaging Supplier

The information contained herein constitutes proprietary confidential trade secret information of Owens-Brockway

Glass Container Inc., and is to be accepted only subject to that understanding. It is to be kept confidential and

not copied, used, or conveyed to others without Owens-Brockway Glass Container Inc.’s written authorization. 3

employees

languages

22,500+

13 official

+ joint ventures in additional countries21 countries

79 plants

Perrysburg, Ohio – United States

World headquarters

in net sales 2012

worldwide patents

$7.0 billion

1,900+

O-I in Europe

The information contained herein constitutes proprietary confidential trade secret information of Owens-Brockway

Glass Container Inc., and is to be accepted only subject to that understanding. It is to be kept confidential and

not copied, used, or conveyed to others without Owens-Brockway Glass Container Inc.’s written authorization. 4

11 countries

37 plants

European headquarters

Bussigny, Switzerland

$2.8 billionin net sales 2012

8,000 employees

#1 glass packagingsupplier

Consumers prefer beer in glass

90%of US craftbeer drinkers

prefer beer in a glass bottle*.

The information contained herein constitutes proprietary confidential trade secret information of Owens-Brockway

Glass Container Inc., and is to be accepted only subject to that understanding. It is to be kept confidential and

not copied, used, or conveyed to others without Owens-Brockway Glass Container Inc.’s written authorization.5

78%of Europeanbeer drinkers

prefer to buy beer in glass**.

* Source: GFK Custom Research, “O-I: Increasing Use of Glass Beer Bottles,” December, 2011

** Source: FEVE/InSites Consumer Packaging Preferences Study(December 2010)

Reasons to choose glass

Taste

Health

Sustainability

The information contained herein constitutes proprietary confidential trade secret information of Owens-Brockway

Glass Container Inc., and is to be accepted only subject to that understanding. It is to be kept confidential and

not copied, used, or conveyed to others without Owens-Brockway Glass Container Inc.’s written authorization.

Sustainability

Quality

Versatility

Transparency

Glass: a sustainable packaging choice

• Made from readily-available, natural raw materials(sand, soda ash and

limestone)

The information contained herein constitutes proprietary confidential trade secret information of Owens-Brockway

Glass Container Inc., and is to be accepted only subject to that understanding. It is to be kept confidential and

not copied, used, or conveyed to others without Owens-Brockway Glass Container Inc.’s written authorization.7

limestone)

• Endlessly and 100% recyclable into new glass containers

• Use of recycled glass

(cullet) in production

reduces energy consumption and carbon emissions

European Glass Recycling Rates

• 70% of glass bottles

and jars in EU-27 are

recycled

• Over 98% of glass

The information contained herein constitutes proprietary confidential trade secret information of Owens-Brockway

Glass Container Inc., and is to be accepted only subject to that understanding. It is to be kept confidential and

not copied, used, or conveyed to others without Owens-Brockway Glass Container Inc.’s written authorization.8

Source: FEVE

• Over 98% of glass

bottles and jars in

Belgium are recycled

• Still room for improvement in certain countries

Case study:Marks & Spencer closed loop project

The information contained herein constitutes proprietary confidential trade secret information of Owens-Brockway

Glass Container Inc., and is to be accepted only subject to that understanding. It is to be kept confidential and

not copied, used, or conveyed to others without Owens-Brockway Glass Container Inc.’s written authorization.9

Programme Partners

The information contained herein constitutes proprietary confidential trade secret information of Owens-Brockway

Glass Container Inc., and is to be accepted only subject to that understanding. It is to be kept confidential and

not copied, used, or conveyed to others without Owens-Brockway Glass Container Inc.’s written authorization.10

M&S Objectives – Plan A

Plan A

Climate Change SustainabilityWaste

The information contained herein constitutes proprietary confidential trade secret information of Owens-Brockway

Glass Container Inc., and is to be accepted only subject to that understanding. It is to be kept confidential and

not copied, used, or conveyed to others without Owens-Brockway Glass Container Inc.’s written authorization.

HealthFair Deal

• Achieved 25% packaging reduction

• Over 90% Recyclable Packaging Used

• Achieved increase in key sustainable raw materials

•Completed on-pack messaging for consumers

M&S Raw Materials Vision

• To ensure all our packaging requirements are

sourced from certified sustainable sources, with all

The information contained herein constitutes proprietary confidential trade secret information of Owens-Brockway

Glass Container Inc., and is to be accepted only subject to that understanding. It is to be kept confidential and

not copied, used, or conveyed to others without Owens-Brockway Glass Container Inc.’s written authorization.

sourced from certified sustainable sources, with all

sources secure, for future generations

The M&S / SWP / O-I partnership designed to

secure a good source of recycled glass

Why use recycled glass in container production?

• Glass can be recycled endlessly.

• Takes less energy to melt cullet than to melt raw materials.

• Using cullet reduces the amount of virgin materials required.

The information contained herein constitutes proprietary confidential trade secret information of Owens-Brockway

Glass Container Inc., and is to be accepted only subject to that understanding. It is to be kept confidential and

not copied, used, or conveyed to others without Owens-Brockway Glass Container Inc.’s written authorization.

• Some of the raw materials used to make glass release CO2 when melted, cullet does not.

• Reduced environmental impact from obtaining and processing raw materials.

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Challenges in Recycling

Contamination of Recycled material can affect the process

Impurities can affect the glass colour, which may be critical especially on high value products.

Imbalance in colour production and consumption in UK

The information contained herein constitutes proprietary confidential trade secret information of Owens-Brockway

Glass Container Inc., and is to be accepted only subject to that understanding. It is to be kept confidential and

not copied, used, or conveyed to others without Owens-Brockway Glass Container Inc.’s written authorization.14

Imbalance in colour production and consumption in UK

• All materials are facing similar challenges, but

• Significant benefits in using recycled glass

• Infinitely recyclable

• Re-melting glass into containers is the best option

Somerset Waste Partnership

• Sort-It Plus

• M&S Intervention

• Recycling Rate

• 14,000t p/a

The information contained herein constitutes proprietary confidential trade secret information of Owens-Brockway

Glass Container Inc., and is to be accepted only subject to that understanding. It is to be kept confidential and

not copied, used, or conveyed to others without Owens-Brockway Glass Container Inc.’s written authorization.

• 14,000t p/a

• O-I

• Plan A Attributes

•Part of vendor rating

So what does this partnership deliver

Sort It Plus Offers

Better colour

separation

Reduced risk

of

contamination

Secured

source of

supply

Local supply

so reduced

logistics

The information contained herein constitutes proprietary confidential trade secret information of Owens-Brockway

Glass Container Inc., and is to be accepted only subject to that understanding. It is to be kept confidential and

not copied, used, or conveyed to others without Owens-Brockway Glass Container Inc.’s written authorization.16

contamination supply

FlintGreen / Mixed

Somerset 37% 63%

English

Average10% 90%

logistics

Closed Loop – Own Label Ale

Places waste in collection systemPlaces waste in collection system

•Consumer

•Somerset Waste

Partnership

Sells Bottled BeerSells Bottled Beer

•Marks & Spencer

The information contained herein constitutes proprietary confidential trade secret information of Owens-Brockway

Glass Container Inc., and is to be accepted only subject to that understanding. It is to be kept confidential and

not copied, used, or conveyed to others without Owens-Brockway Glass Container Inc.’s written authorization.17

Sells Separated CulletSells Separated Cullet

Partnership

Supplies BottlesSupplies Bottles

•O-I

Supplies Bottled BeerSupplies Bottled Beer

•Marston’s / Adnam’s

Spencer

Working Example

� Marks & Spencer invests to improve kerbside collections in Somerset.

� O-I recycles it into new containers.

� Marston’s buys these containers, fills them and supplies them to M&S.

� Marks & Spencer sells them to consumers to be recycled, again.

The information contained herein constitutes proprietary confidential trade secret information of Owens-Brockway

Glass Container Inc., and is to be accepted only subject to that understanding. It is to be kept confidential and

not copied, used, or conveyed to others without Owens-Brockway Glass Container Inc.’s written authorization.

� Visible trail through the partners in supply chain, improving the

collection rates and the quality of recycled material.

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Somerset Waste Partnership

� Improves the waste collection

� Grows the amount of cullet being generated.

� Improves colour separation and quality

The information contained herein constitutes proprietary confidential trade secret information of Owens-Brockway

Glass Container Inc., and is to be accepted only subject to that understanding. It is to be kept confidential and

not copied, used, or conveyed to others without Owens-Brockway Glass Container Inc.’s written authorization.

�The transportation of the waste is minimised

19

Right-weighting Regional Ales

� Demands for packaging reductions will continue

� Over view of the work already carried out

� Future demands

The information contained herein constitutes proprietary confidential trade secret information of Owens-Brockway

Glass Container Inc., and is to be accepted only subject to that understanding. It is to be kept confidential and

not copied, used, or conveyed to others without Owens-Brockway Glass Container Inc.’s written authorization.20

Award Winning Partnership

The information contained herein constitutes proprietary confidential trade secret information of Owens-Brockway

Glass Container Inc., and is to be accepted only subject to that understanding. It is to be kept confidential and

not copied, used, or conveyed to others without Owens-Brockway Glass Container Inc.’s written authorization.21

Sustainability through Right-weighting

22

Sustainability through Right-weighting Regional Ales

Right-weighting Regional Ales

Award Winning Adnam’s bottle

Significant Weight reduction

The information contained herein constitutes proprietary confidential trade secret information of Owens-Brockway

Glass Container Inc., and is to be accepted only subject to that understanding. It is to be kept confidential and

not copied, used, or conveyed to others without Owens-Brockway Glass Container Inc.’s written authorization.23

WRAP / IOP recognition

On-going material savings

Right weight maintaining the brand

Maintain Branding

Modern design, refreshed often

Non-standard standards

The information contained herein constitutes proprietary confidential trade secret information of Owens-Brockway

Glass Container Inc., and is to be accepted only subject to that understanding. It is to be kept confidential and

not copied, used, or conveyed to others without Owens-Brockway Glass Container Inc.’s written authorization.24

Key Trends

� Further movements.

� Maintain values.

� Differentiation

The information contained herein constitutes proprietary confidential trade secret information of Owens-Brockway

Glass Container Inc., and is to be accepted only subject to that understanding. It is to be kept confidential and

not copied, used, or conveyed to others without Owens-Brockway Glass Container Inc.’s written authorization.

�Possible characterisation.

25

Summary – Key Messages

� Environmental sustainability in all functions

� Best results via Partnership

The information contained herein constitutes proprietary confidential trade secret information of Owens-Brockway

Glass Container Inc., and is to be accepted only subject to that understanding. It is to be kept confidential and

not copied, used, or conveyed to others without Owens-Brockway Glass Container Inc.’s written authorization.26

� Sustainability not just about the lightest container

Questions

May 14, 2013

The information contained herein constitutes proprietary confidential trade secret information of Owens-Brockway

Glass Container Inc., and is to be accepted only subject to that understanding. It is to be kept confidential and

not copied, used, or conveyed to others without Owens-Brockway Glass Container Inc.’s written authorization.

• O-I

• Plan A Attributes

•Part of vendor rating

• What happens Next?

The information contained herein constitutes proprietary confidential trade secret information of Owens-Brockway

Glass Container Inc., and is to be accepted only subject to that understanding. It is to be kept confidential and

not copied, used, or conveyed to others without Owens-Brockway Glass Container Inc.’s written authorization.