© 2007 E&S Global1 E&S Global

© 2007 E&S Global2 E&S Global

What Is Happening?

Consumer Focused Age appropriate Bi-Lingual Ethnic Foods

Convenience Health/Wellness Safety/Tamper Evident Sustainability and

Minimization

Value Communication Flavor Catchers Physiology vs.

Psychology Colors Shapes

Customer Focused Channel specific Chain specific

© 2007 E&S Global3 E&S Global

Consumer Focused

Age Appropriate – mainly focused on the aging of the US population 80% of disposable income is

over 55 years of age

So what does this mean? Larger fonts – easier to read Larger caps – easier to open Serving size – dinner for two

or one – not four to six “Traditional” now has a new

meaning

© 2007 E&S Global4 E&S Global

Consumer Focused

© 2007 E&S Global5 E&S Global

Consumer Focused

Bi-Lingual Hispanic origin is the

fastest growing ethnic segment

Largest minority in the US

Closing the gap on all non-Latino groups

Need to communicate on shelf and at shelf

Ethnic Products Flavors and spices from

all over the world Influx of various ethnic

groups has led to expanding cuisine

New aisles and products to hold all of the merchandise

“Traditional” consumers looking for flavor excitement

© 2007 E&S Global6 E&S Global

Convenience

Balanced by a return to eating at home – means convenience at many levels

© 2007 E&S Global7 E&S Global

Convenience

Ready to Eat Grab and go Single serve “Eating Friendly”

packaging Portion control Inner packages Variety packs Lunchables Healthy snacks

Ready to Heat Microwave ready Just add water (to

original package) Dual ovenable Microwave reflector

material – crisp crust or outer layer

© 2007 E&S Global8 E&S Global

© 2007 E&S Global9 E&S Global

Health and Wellness

Health Low Fat Trans Fat Free Gluten Free Sugar Free Fat Free Allergen Free

Peanut Dairy Egg

Wellness Organic All Natural Whole Wheat Oat based Heart Healthy Vitamin Water

© 2007 E&S Global10 E&S Global

© 2007 E&S Global11 E&S Global

Safety and Tamper Evident

Balance between ease of opening and safety Redundant systems

Sealed box Plastic sealed bottle Foil sealed bottle top

Nitrogen flush Counterfeiting – damage to brand equity Taken for granted in the US – but should it be?

© 2007 E&S Global12 E&S Global

Safety and Tamper Evident – Australia

Film wrappers Blister or strip packs Bubble packs Heat shrink bands or

wrappers Pouches, sachets or form

fill seal packs Container mouth inner seal Sealed two-piece capsules

Tape seals Breakable caps Tear away caps Sealed metal tubes Sealed plastic laminate

tubes Cans In-built tamper evident

controls (color change)

Very strong foundation of protection!

© 2007 E&S Global13 E&S Global

Sustainability and Minimization

Sustainability - Recycling Paperboard Cardboard and corrugate Plastic bottles Plastic products/resin Grocery bags and sacks New corn-based resins

Cereplast Biocom Durability questions

© 2007 E&S Global14 E&S Global

Sustainability and Minimization

Minimization Glass to PET Box to Bag Box elimination Outer packaging –

shrinking and/or disappearing

Recycling

© 2007 E&S Global15 E&S Global

Value Communication

Proper design for value position “Cheap” looking labels can not be on premium

productsGreat design can exist in the price and value

tier Be wary of over promising on quality Be wary of de-valuing high quality and innovative

packaging Over engineering will not pay dividends

Packaging can be a competitive advantage

© 2007 E&S Global16 E&S Global

© 2007 E&S Global17 E&S Global

Flavor Catchers

Quick food use to always mean poor taste New technology can help trap flavor Varying substrates can keep texture as it should

be Opportunity to vary heating and texture with

innovative packaging Resins, vapor barriers, crisping technology – all

play a role in improving overall flavor Goal – quick food the consumer enjoys

© 2007 E&S Global18 E&S Global

© 2007 E&S Global19 E&S Global

Physiology vs. Psychology

Physiology – shape impacts image and value Innovative shapes earn

higher sales (quality expectations must be met)

Private label tends to follow – not very innovative

Manufacturer/Retailer partnerships are necessary to change this

Customers (retailers) are wary of the very new

Psychology – color and other triggers grab attention Primary vs. Pastel Variation on shelf Non-linear design Shelf configuration Link use to emotion

Children Pets Seniors

Nostalgia

© 2007 E&S Global20 E&S Global

© 2007 E&S Global21 E&S Global

Customer Focused

Channel Specific Club packs Co-branding Multi-packs/Band-packs Dollar items Gift packs Co-marketing

opportunities

Chain Specific Size to price point Exclusive relationships Movie based marketing New item or pack

introduction as “Test Market”

Character licensing

© 2007 E&S Global22 E&S Global

Costco

Target

KrogerWalmart

7-Eleven

Dollar General

© 2007 E&S Global23 E&S Global

Conclusions

Consumers More savvy than ever More time pressed than ever Understand their needs Understand their triggers Design product to entice

their senses Design product to appeal to

their lifestage Do not hold onto trends too

long Work today for five years out

Customers Spend time with the

innovators Build relationships with the

visionaries Invest resources in the

groups who will grow for the long term

Deliver to them consumer insights – and your solutions

Remember – packaging is really tomorrow’s garbage!!