Simple Servings Overview

PATENT PENDING© 2008 William Fox Munroe, Inc.

3 East Lancaster Avenue, P.O. Box 65, Shillington, PA 19607-0065 610-775-4521 Fax: 610-775-8433

TM

a socially responsible solution for portion distortion

Simple ServingsTM, a socially responsible solution for portion distortion. Today's consumer research indicates a need for portion-controlled breakfast cereal products that also simultaneously solve environmental issues.

The goals were to develop a package that eliminates the need for an inner bag, controls the serving-size, and keeps the remaining product fresh. Could we reduce the carbon footprint of the largely popular American cereal box, while also allowing consumers to eat one single serving of their favorite breakfast cereal? We think so.

Our new box design, Simple ServingsTM, incorporates pull-back tabs that open just one single serving chamber for your daily dose of morning goodness, and uses environmentally responsible, recyclable, and compostable materials. Material options include starch and/or cellulose fiber based materials, paper pulp with a PLA laminate, and PLA films, just to name a few.

Essentially, the concept may result in a 20 percent reduction in the carton’s footprint by volume of material usage. The package redesign, along with the use of environmentally conscious materials will reduce the use of virgin paper fiber, lower greenhouse gas emissions, and eliminate harmful by-products of the manufacturing process.

PATENT PENDING

Simple ServingsTM

© 2008 William Fox Munroe, Inc.

• Existing Cravin’ box structure = 168.17 square inches of box material

• New Simple Servings box structure = 179.65 square inches of box material

• Slightly more material, but a lighter weight material, and no individual pouches

Simple ServingsTM

© 2008 William Fox Munroe, Inc. PATENT PENDING

Top view - open

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Simple ServingsTM


Simple ServingsTM


Simple ServingsTM


Design ConsiderationsIn trying to decide which material was most suitable for our futuristic package design from an environmental perspective, we had to address the public concerns with current packaging. Next, it was critical to understand the trade-offs associated with a material selection and to understand the issues we were choosing not to address. Below we'll discuss some of the latest solutions to sustainable packaging available today, some of which we know will work in the very near future, others–well, we'll just see how they test in the eyes of the consumer at retail.

The very first of it's kind to hit the Americas–Sleeve-in-pouch (SIP), designed by Japanese inventors Hosokawa Yoko Ltd. of Tokyo, incorporates the first fexible/rigid hybrid package on shelf in the world. This unique package provides excellent cube utilization and use of materials when compared to other stand-up alternatives such as: Bag-In-Box, HFFS Stand-Up Pouch, VFFS Stand-Up Pouch, Spiral Wound Can and Glass Jar. Each perfect cube shape created by SIP allows for efficient distribution, retailing and storage at home. The package also offers an easy to open and re-close seal and zipper. This design offers an incredible savings to both the consumer and manufacturer, as it reduces packaging by 10-30%.

On the other hand, we still have to tend to the issue of material selection. Consumers may look at SIP and say, "none of this is recyclable, kids, just throw it out." We researched other solutions to the common "throw it out" mentality. Verdepack, manufactured by New Ice Inc. offers a cellulose-based food service tray that is made exclusively in the USA. The trays are said to be compostable in an industrial composting machine. The Verdepack trays are made with a unique potato starch formulation that replaces environmentally harmful plastic and Styrofoam products. The product is completely recyclable.

Finally, there is the material we all know very well for it's use in egg cartons–fiberboard. Molded Fiber, a UFP Technologies Brand, uses 100% post-consumer recycled paper, mainly from newspapers. The material is environmentally responsible and touts that it meets consumer and corporate demands - simultaneously. There's not really a whole lot to say about it. The product is produced with recycled newspapers and water, then molded in custom trays. One downside to the product is that it cannot be used in direct contact with consumable goods, such as cereal. Several solutions have been offered which include PLA laminate adhered to the board for barrier control. Research is in the works to prevent moisture transfer from the PLA to food products. Australian scientists have begun to conclude that cinnamon oil works to prevent moisture transfer, but a definitive answer is yet to be released.

It’s clear that we have made substantial advances in technology over the years in order to develop packaging that’s socially responsible as well as consumer-friendly. We chose to work with TerraSkin® and Evlon® for this unique concept design. Each material offers suitable environments for food products at retail. The true test will come when consumers have access to products packaged in these materials on-shelf.


Rock Paper?TerraSkin® is a combination of Calcium Carbonate (>75%) with a small quantity (<25%) of non-toxic resin PE (polyethylene) added to create a strong suitable substrate. The Calcium Carbonate is collected mainly from waste material from the building and construction industry, such as marble and limestone scraps, which are then ground down to a fine powder-like chalk. The PE is partly post-industrial recycled, and acts as the binder for the Calcium Carbonate. Together these materials create a substrate that is both water and tear resistant.

DegradationTerraSkin® is degradable. Experimentations on a TerraSkin® sample with a thickness of 200µm showed the paper will begin to degrade when exposed to direct sunlight and moisture for approximately 6-9 months. However, TerraSkin® will not degrade in your store/home when kept indoors. Currently, versions of TerraSkin® with additional UV blocking agents are being developed so this product can be suitable for outdoor applications.

In-Plant RecyclingTerraSkin® can be recycled by converting used paper into pellets. At this time, the manufacturer recycles all scrap and overrun paper on jobs finished in Asia. The pellets can then be used in the production of colored paper. In contrast, traditional methods to recycle pulp-paper is a complex process which requires water for further bleaching processes resulting in waste water needing to be treated. The simplicity in recycling TerraSkin® reduces resource wastage.

CertificationTerraSkin® received a Silver Cradle to Cradle Certification from MBDC in 2007. For additional information visit www.mbdc.com

Environmental SafetyWhen burning, the CO2 release from TerraSkin® is approximately 50% less than pulp paper products. TerraSkin® is made with a state-of-the-art production process which does not utilize water or emit toxic air. The product is also free of bleach, strong acid, and base.

Summed UpThe raw material is 80% Calcium Carbonate (CaCO3) and 20% binder (PE). The material can mimic the current applications of regular paper, yet gives the advantage of being water-resistant, tear-resistant and uses 20-30% less ink than regular paper. The paper is suited for off-set printing and can use regular inks. There are no trees or fibers in this paper, and there is no water used in the production - so no waste-water or bleaching.

Key Characteristics:• Tree-free• Tear resistant• Water resistant• Regulated for use in consumable goods• Exceptional deadfold• Degradable

Suggested Applications:• Folding cartons• Shopping bags• Gift boxes• Promotional and marketing materials• Signage• Labels


TM

®

Corn-based Packaging FilmDeveloped by BI-AX International, Evlon® Compostable Plastic Film is made from NatureWorks® bio-polymer film. NatureWorks® PLA (Polylactide) polymer is derived from plants, and widely accessible, renewable, natural resources. The bio-polymer resins used to make Evlon® are manufactured by Cargill. Through a series of fermentation and extraction processes, corn-based sugar molecules are transformed into lactide monomers and then ultimately, into NatureWorks® bio-polymer pellets. The pellets are then converted into the film by BI-AX International.

Cycle of LifeFrom the earth back to the earth…Corn is cultivated and picked by farmers. At the milling plant, corn is cooked 30 to 40 hours at 50 degrees celcius. Machines then grind the corn to extract the corn starch. A micro organic process ferments the corn creating lactide monomers. Lactic acid is heated creating lactide monomers. Lactide molecules are opened then linked into polylactide polymer. The resulting natural plastic is formed into PLA pellets. BI-AX converts pellets into crystal clear high grade Evlon® film. Rolls of Evlon® film are made into packages. Packaged film can be put into industrial composts where it converts to mostly water and CO2 within in 90 days.

ApplicationsThe new era of social conscience plastic is here, now. So what does that mean for the consumer and manufacturer? Retailers, legislators and consumer preference will mandate that an environmentally friendly alternative to oil-based plastic packaging be found. This PLA film affords the option of migrating from oil-based film to corn-based film at a reasonable price and with comparable performance. Evlon® offers the properties needed in a transparent film with excellent deadfold, high clarity, gloss, flavor and aroma barrier and high rigidity.

Key Characteristics:• Superior mechanical properties to minimize brittleness• High stiffness• Superb clarity• High gloss• Excellent flavor and aroma barrier• Exceptional deadfold• Compostable

Suggested Applications:• Folding cartons• Labels• Window film boxes• Laminations


100-calorie snacks: Do they help or hinder portion control?Question: It seems like a good idea - do these 100 calories snacks help you cut portion size?

Yes, they can, provided you stop at one pack. They are helpful for people who can't control the amount they eat from larger packages. The provided built-in portion control helps prevent mindless eating.

Smaller packages of snack also can prevent overeating by introducing what researchers call a "transaction cost" - the cost of having to open up another package. This makes you stop and think about how much you're eating. So 100-calorie snack packs can prevent you from eating on automatic pilot. You're forced to decide whether or not to continue snacking.

100-calorie snack packs can also aid portion control by helping people visualize what 100 calories of food looks like. But according to some research, such awareness doesn't necessarily prevent overeating.

Question: So how can they make people overeat?

According to a new study from Arizona State University, 100-calorie snack packs actually boost consumption by just the type of people likely to buy these snacks - chronic dieters.

When faced with 200 calories worth of regular-sized M&M's versus the same caloric amount of mini M&M's packaged into four baggies, 18 percent of chronic dieters (also called restrained eaters) polished off all the mini M&M packages while only 4 percent did so when regular sized candies were offered in a larger package.

Unrestrained eaters - people who don't perpetually diet and don't have emotional ties to food - did the opposite. Nearly one-third ate more regular-sized candies from the larger package.

People have been conditioned to think that when food is tinier, and comes in smaller packages, it's something to help control calorie intake. But according to the researchers, when people see small pieces of food in multiple, but smaller packages, they perceive those packages as containing more calories. Researchers speculate the stress created by this conflict (e.g. how can diet food have more calories?) triggers restrained eaters to consume more food in smaller packages.


SOURCE: www.ctv.ca, June 2008

SLEEVE-IN-POUCH TECHNOLOGY CLOSE TO BAGGING U.S. CEREAL BUSINESSComing soon to a store near you: A reclosable pouch that can be stacked on store shelves like a carton, accommodates vivid graphics like a shrink label, and provides the barrier properties of a pouch. Sleeve-in-pouch (SIP) technology is about to come to North America, where it could shake up the market, particularly in such categories as dry cereals.

Tokyo-based Hosokawa Yoko introduced what it called “the world’s first stackable stand-up pouch” to a North American audience in 2002 at Pack Expo. While the structure drew attention, the flexible packaging maker has limited production in Japan, where it sells the squared pouches to Unilever for Lipton tea bags.

With pouch-making equipment in Japan churning out as many as 80,000 stackable pouches per day, the company has decided to take a more aggressive stance in North America, said Neil Kozarsky, president of T.H.E.M., a Marlton, NJ-based co-packer working with Hosokawa Yoko.

The first U.S. product to be introduced in the U.S. market could be a cereal pouch launched with a major producer, sources said. Expect the new pouches to be introduced in the United States very early in 2007.

SIP offers numerous consumer benefits and value—exactly what today’s packaging innovation is all about. The finished package looks like a folding carton but is made of film with a paperboard liner laminated to the interior walls of the pouch. This construction eliminates the mess associated with product falling between the carton and liner in many bag-in-box structures. It is topped by a reclosable zipper made of LLDPE. The SIP package uses a heat-sealed, oriented polypropylene film that is reverse-printed on a color gravure press and then dry-laminated to a LLDPE film layer to provide an added barrier. The film is then laminated to the paperboard, providing the stiffness needed for standing and stacking. The squared package is easy to open, close, and store.

SIP also offers brand differentiation by offering direct-printed graphics. “It represents a paradigm shift for flexible packaging,” Kozarsky said. “It’s not just a box, but a flexible pouch that offers improvements over traditional box technology.”

Packaging Strategies’ PerspectiveStick packs, another innovation from Japan, are starting to penetrate North America with their unusual shapes and functional uses. SIP technology could take off even faster and with more immediate market impact when consumers tell cereal makers SIP is the better mousetrap for cereal packaging they’ve been begging for.

SOURCE: Packaging Strategies, April 2006

Sleeve-in-Pouch Technology Will Change Bag-in-Box ThinkingAnother revolution is brewing in North American pouch structures. New stackable, reclosable pouches fitted with a laminated paperboard insert will challenge the decades-old and often-cursed bag-in-box cereal package. With billboard graphics capabilities, the efficiency of its cube shape on shelf and in distribution, and again, the convenience of reclosure, look for teas, meal sides, and other traditional bag-in-box items to fall to killer sleeve-in-pouch applications.


Cereal Brands Wear Green for Wal-MartBy Jean Luo

Evidence of Wal-Mart's sustainable packaging achievements are showing up on boxes of Kellogg Co. and General Mills cereal.

The retailer's green efforts are touted on boxes of Kellogg's Frosted Flakes, which feature an "Our Amazing Earth" icon on the front and information on how to "reduce, reuse, recycle" on the back. The packaging also directs shoppers to the website of environmental protection network Earth 911 to find local recycling centers for a variety of materials.

Wal-Mart receives exclusive mention on the box's side panel, which touts how the chain is "working toward zero net waste" and directs shoppers to the retailer's corporate sustainability microsite. The side panel also notes several of the retailer's packaging achievements, which include:

• saving 356 barrels of oil and 1,300 trees in 2007 "just by reducing the packaging of one toy manufacturer." Wal-Mart aims to save 1,000 barrels of oil and 3,800 trees in 2008 by expanding the program to other manufacturers, the panel states.

• reducing plastic waste by using a "sandwich baling" system to compact the plastic used in shipping.

Similarly, General Mills has developed boxes for Cheerios made with 100% recycled materials. A green "Healthy Planet, Healthy Heart" graphic appears

across the package's front, while the back panel urges shoppers to "reduce, reuse and recycle" and touts the following manufacturing achievements:

• using "100% natural whole grain oats" in Cheerios;

• removing the inedible hulls of the oats and burning them for energy to make other foods, and;

• reducing the amount of plastic liner, paperboard and corrugate in packaging.

Both products are getting endcap placement in Wal-Mart stores. Kellogg and General Mills are among hundreds of product vendors that have responded to Wal-Mart's sustainable packaging directives.

In other activity, Wal-Mart last month unveiled a new corporate logo to replace the one it has used since 1992. The new logo incorporates the "Save Money. Live Better" tagline the chain began using in 2007. It is already being used in store signage, print ads and TV spots, but will not be added to storefronts until fall 2008, according to the company.

Published: July 2008Source: In-Store Marketing Institute

Source: In-Store Marketing Institute Source: In-Store Marketing Institute Source: In-Store Marketing Institute


An average American family discards about 8.3 pounds of paperboard cereal boxes a year. However, if this cereal was purchased in flexible plastic bags without the box, only 1.4 pounds of packaging would be discarded.

Source: Flexible Packaging Association Websiteflexpack.org

Flexible Packaging Association [email protected]

The research, which is based on Nielsen Homescan panel data and a segmentation model derived by NMI, splits shoppers into one of five categories according to their attitudes surrounding health and sustainability:

• 19% are "LOHAS" (lifestyles of health and sustainability - or "LOHAS") consumers, described as "passionate, environmental, socially responsible stewards." They are highly concerned about both personal and planetary health.

• 19% are "Naturalites," who are primarily motivated by health, but place an emphasis on personal rather than planetary health.

• 25% are "Drifters," younger, trend-oriented consumers with good intentions about environmental issues but don't necessarily have the economic means to rigidly adhere to the movement.

• 19% are "Conventionals," described as "cautious actors" and more traditional consumers who might, for example, be motivated to try a compact fluorescent light bulb primarily because it saves on their energy costs.

• 17% are "Unconcerned" consumers, who are either unaware or unmotivated by environmental sustainability issues.

Besides having a preference for the club store channel, LOHAS shoppers outspend unconcerned shoppers in virtually every department except meat. Top LOHAS categories relative to unconcerned shoppers are fresh produce, alcoholic beverages, dairy, health & beauty care, and dry grocery.

• Product labels should clearly communicate the product's function - efficacy, value and convenience - along with its LOHAS benefits.

Published: August 2008Source: The Nielsen Company and the Natural Marketing Institute

Purchase Behavior Among “Health and Sustainability” Shoppers

The Sustainability Gap “Green” attitudes

don't always lead to “green” purchases

By Erika Flynn

Oak Brook, IL - Recent studies have concluded

that 30% to 40% of consumers feel much more

concerned about environmental issues today than

one year ago, but there is a notable gap between

consumers' green attitudes and their actual green

behaviors. Consumers want to behave ethically

and sustainably when shopping, but the intent isn't

translating into real action, said Jonathan Dodd,

G2's global retail and shopper practice leader.

Published: June 2008

Source: In-Store Marketing Institute


“Consumers may want a package that’s more convenient, is made from sustainable material, and also provides a health benefit such as portion control,” she explains. “Finding that place where we can use packaging to drive the most value to the consumer, optimizing competing trends, is what we’re after.”

Carol CadyDirector of Packaging Research and

Development, GENERAL MILLS

SOURCE: Brand Packaging Magazine, May/June 2008

© 2008 CTVglobemedia All Rights Reserved.


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Simple Servings Overview