Presentation by Harris DeLoach, Sonoco Chairman and CEO, at the Food Packaging Technologies Summit in May 2012

1. Food Packaging
Technologies Summit
Harris E. DeLoach, Jr.
May 8, 2012
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2. Sonoco Today
2011 2010 2011 2010 2011 2010 2011 2010
Sales $1,977.3 $1,798.5 Sales $1,892.2 $1,744.0 Sales $471.4 $477.2 Sales $158.0 $104.4
Base EBIT $191.5 $196.0 Base EBIT $138.2 $136.4 Base EBIT $21.7 $14.2 Base EBIT $15.2 $17.5
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3. Changing Business Mix
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4. Global Consumer Strategy
Sonoco’s strategy targets a shift in the mix of its business
toward faster-growing consumer-related markets.
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5. Only Total Solutions Provider
Packaging Design,
Innovation and Sustainability
Artwork Management Retail Merchandising and Recycling
Complete Consumer Packaging Supply
Packaging Chain Services
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6. Corporate Customer Growth
Key New Brands Won Since 2005 2011
$1.1 billion sales
Brand Size
$1 billion+ $250 million+
2005
$0.7 billion sales
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7. Consumption Trends
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8. Macro Economic Trends Impacting Packaging
Macro-economic Impact
on Packaging Industry
 High unemployment – 8.1%
 Low confidence in political leadership
Consumers
 Spending habits changing – High end
and private label
 High raw material inflation
Customers  Cost reduction/substitutions
 More CPG consolidation
 Food inflation, inability to raise prices
Retailers  Pushing for retail-ready solutions
 Private label and store brand acceleration
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9. 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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10. Packaging Format Changes
A Case Study for Powdered Infant Formula
 Metal to Composite Cans
 Composites to Rigid Plastic
 Plastic to Flexible Pouch
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11. Product Safety
 Regulatory Changes
 BPA, mineral oils, solvents, melamine, etc.
 Global Food Safety Initiative
 Supply Chain Security
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12. Health and Wellness Products
87% of Consumer Trying to Eat Healthier
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13. Product Stewardship and Sustainability
Design for the Environment
A product offering’s interconnected design variables…
GOAL
…and Sonoco’s goal of consistently improving
functionality, reducing cost and minimizing environmental impact!
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14. Packaging Sustainability
Source Reduction
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15. Packaging Sustainability
Renewable, Recycled content, Recyclability
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16. Packaging Recycling
 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
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17. Company Stewardship
Sustainability, Citizenship Reducing Footprint
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18. Bifurcation of Consumer Spending
Private Label Growth
Sonoco PL packaging sales to $165 million in 2011
(8% of Consumer Packaging sales)
PL Sales Composite Rigid
Flexibles
2010 Cans Plastics
$150 million $96 million $19 million $35 million
% Division sales 13.5% 5.5% 7.15%
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19. Consumer Diversity and Aging Populations
Age-friendly Packaging
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20. Shelf Presence
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21. E-Commerce and Non-Traditional Retailing
Cold Chain Logistics
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22. Packaging Customization
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23. Key Takeaways
 Emerging market influences
 Consumer demands changing
 Packaging technology must change
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24. Questions
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