Stand Up Pouch Packaging

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STANDUP-POUCH PACKAGINGProviding Form, Function,Convenience and Success

to re►invent your [Brand ▪ Product ▪ Package]

Prepared by:

Dennis CalamusaALLIEDFLEX™ TECHNOLOGIES, INC.Sarasota, Florida USA www.standup-pouch.com



In recent years, Standup-Pouch packaging

has created an interesting marketingopportunity for many consumer productcompanies. Both new and traditionalproducts have been introduced in a widerange of categories including single servebeverages, processed foods, cookies,snacks, breakfast cereals, confectioneries,

pet treats & pet foods, in addition to a wide range of value added productapplications. These product categories and other emerging markets will increasethe magnitude of this package style in the market for many years to come.

GLOBAL GROWTH 1998 thru 2006

North America Growth 2001 thru 2006

0

1

2

3

4

5

6

7

8

B i l l i o n

P o u c h e s

Beverage Food Pet Food Non Food

1998

2006

0

0.5

1

1.5

22.5

3

3.5

4

B i l l i o n P o u

c h e s

Beverage Food Pet Food Non Food

2001

2006



Key Standup-Pouch Markets

The trend toward Standup-Pouch packaging has been mainly driven bycompanies looking for ways to differentiate their products from the competition,add consumer convenience through improved methods of reclosability and ingeneral provide an innovative marketing approach to stimulate the sales of a

stagnant brand or increase the acceptance and success of a new productintroduction.

Well it worked! We continue to see a dramaticproliferation of Standup-Pouch introductions in

the market, not just for niche or new product introductions, butwe have started seeing the crossover of mainstream products andin some cases, the shift of complete product categories to

the Standup-Pouch.This type of marketing momentum toward a packaging format has

not been experienced in decades.

Today, all packaging is getting more innovative and we can expect to seecontinued trending toward the “re- thinking” of consumer convenience with arenewed focus on the “product’s point of use”.

Retort Pet Foods“wet”

Pet Treats

Dry Pet Foods

Frozen FoodPrepared FoodsSauces &CondimentsPowderedBeveragesDried Fruit, SaltySnacks & BiscuitConfectioneryDry MixesRetort Foods

Agri-Chem

Health & Beauty

Detergents

Automotive

Fruit FlavoredDrinks

Water

Isotonic

Pet Food FoodNon-FoodBeverage/Liquid



Based on new development efforts underway we will see the further reach of theStandup-Pouch packaging format into many more product categories includingprocessed foods, condiments, detergents, health and beauty products and other household product applications.

The Standup-Pouch has successfully demonstrated the unique ability toaccommodate both dry and liquid applications. Now with the possibility to add notonly zipper for reclosability, but spouts and dispensing features we can expect tosee a new realm of exciting product introductions.

As success grows and we begin transitioning a broader range of products into the Standup-Pouch package format

there becomes a greater awareness as to the total cost of producing the package as it isbrought to market.

Many in the field believe that if theSUP is going to continue to be embraced we will need toreduce material cost and continue to enhance SUPpackaging machinery technology to run more productivelyand efficiently, in order to reduce the total cost of thepackage.

As mentioned earlier the Standup-Pouch has been primarily market andconsumer driven, however the Standup Pouch as a packaging format offersmany more benefits to the packager including opportunities of material costreduction as compared to some other more traditional methods. Logistics canhave a major impact on cost particularly when compared to rigid methods of packaging including bottles, can, jars, composite or spiral cans.



The transport, material handling, warehousing and shipping of these rigidpackage containers candramatically add to thetotal cost picture. Manyastute packagers are

beginning to take these logistical costs previously regarded as “fixed costs” intoconsideration when selecting new or future packaging alternatives. This is goodfor the flexible packaging industry and all parties concerned.

The mere magnitude of a shift from rigid to flexible can be overwhelming to some,particularly those who have utilized a particular method of packaging for decades,but this need not be the case as the magic formula to success thus far has beennot necessarily to replace, but rather partner your existing packaging format.

The new Standup-Pouch alternative cangrow market share, adds value and providethe all important consumer with “choice”.This implementation process will enablepackagers to perform a gradual transition tothe future as opposed to a blind leap into theunknown.

Now that the SUP is being commonlyimplemented for mainstream and higher volume product applications, output and

productivity are becoming a more importantfocus in the packaging system selection process. Multiple slower machines,traditionally the only solution, take up valuable floor space, require more supportinfrastructure, labor and in total result in higher operating costs.

Companies are more than ever, comparing Standup-Pouch capital investmentsand packaging material costs to “continuous motion” high speed bottling, canningand bag in box packaging lines and the present day economics of labeled bottles,cans and printed cartons. The packaging machinery technologies for handlingthese rigid formats and the economics of these packages have evolved over thelast 50 + years along with the markets they serve.

The flexible packaging industry has not been given the luxury to “evolve” itstechnologies over many years, but instead we are being driven by the needs andthe urgency of the market, as it rapidly transitions to innovative flexible packagingalternatives.



The machinery industry is answering back with the continued movement towardthe development of high-speed machinery solutions for both dry, liquid and retortapplications.

Standup-Pouch machinerybuilders and packaging materialconverters are being pushed bytheir customers and the market

to increase productivity and reduce packaging material costs.

In the North American region a growinginfrastructure of Contract Packagers have playedan important role in growing the Standup-Pouchmarket and providing consumer productcompanies with the opportunity to introduce a SUPand other innovative flexible packaging solutionswith minimal risk and improved speed to market.

Contract packers can offer that “special expertise”

that only comes from personal experience. This benefit allows you to quickly“ramp up” reducing your overall cost of implementation and immediately adds toyour quality performance ratio.

Production relates to Economics, Distribution to Product Protection andMarketing to Form, Function and Graphics. The contract packer can supportall of these vital ingredients to a product….packaging success formula. Thesefactors are particularly important during a new product / package introduction.

We expect that the contract packaging sector will continue to support thedramatic growth of the Standup-Pouch as they provide their services and

expertise to their customers that represent a growing diversity of industries.

As these co-packers continue to gain important experience in the flexiblepackaging category we expect them to expand and diversify their capabilities,offering a growing opportunity for all those interested in transitioning to the futureas painlessly as possible.



Other innovative pouch styles that are gaining popularity and interest in themarket include:

As all styles of flexible pouch packaging continue to penetrate the market we canbe sure that we will see a “continuous effort” on behalf of the flexible packagingindustry to provide innovate solutions that will support the end users goals of streamlining their production capability, reduce cost and provide creative ways tosupport the market as we move to the next generation of flexible pouch

packaging alternatives.

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Stand Up Pouch Packaging