Most of us are experts in our respective industries, but how do you become an expert in what the consumer wants? Jack Sanders, president and CEO-elect of Sonoco, will discuss Sonoco’s work to satisfy its customers using consumer insight research, and how this was successful in a recent collaboration with Pepperidge Farm on the brand’s popular Baked Naturals® Cracker Chip snack.

1. Structural Packaging Summit
Jack Sanders, our Course
Charting President and COO
Sonoco
Jack Sanders, President and COO
February 27, 2013

2. Sonoco Overview
SALES BY OPERATING SEGMENT SALES BY GEOGRAPHY
(Millions of Dollars) (Percent)
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3. Consumer Trends
 Living with less
 Price, Value and Innovation are the
top criteria
 68% are brand switchers/only 5%
are loyal to one brand
 73% shop in five or more channels
 74% are not loyal to a retailer
 Have more choice and access than
ever
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4. What is Our Economy Telling Us?
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5. Mega Trends Impacting Growth
1 The Next
Billion Consumers
2 Old Infrastructure
New Investments
3 Militarization
Following
Industrialization 4 Growing Output
of Primary Input
Intensifying competition for finite Growing demand for commodities increase
Rising wealth of emerging economies Global supply chain risk
resources volatility. Price inflation intensifies
GDP Contribution: $10 Trillion GDP Contribution: $1 Trillion GDP Contribution: $1 Trillion GDP Contribution: $3 Trillion
5 Developing
Human Capital
6
Keeping the
Wealthy Healthy
7
Everything the
Same but Nicer
8
Preparing the
Next Best Thing
Massive shift from farm to factory Developed economies drive innovation Affluent consumers drive premium Technology advances generate step-
requires investment and reform in healthcare products and services change efficiency gains (3D printing)
GDP Contribution: $2 Trillion GDP Contribution: $4 Trillion GDP Contribution: $5 Trillion GDP Contribution: $1 Trillion
Source: Bain Macro Trends Group Analysis, 2011 5

6. Mega Trends Impacting Growth
1 The Next
Billion Consumers
2 Old Infrastructure
New Investments
3 Militarization
Following
Industrialization 4 Growing Output
of Primary Input
Intensifying competition for finite Growing demand for commodities increase
Rising wealth of emerging economies Global supply chain risk
resources volatility. Price inflation intensifies
GDP Contribution: $10 Trillion GDP Contribution: $1 Trillion GDP Contribution: $1 Trillion GDP Contribution: $3 Trillion
5 Developing
Human Capital
6
Keeping the
Wealthy Healthy
7
Everything the
Same but Nicer
8
Preparing the
Next Best Thing
Massive shift from farm to factory Developed economies drive innovation Affluent consumers drive premium Technology advances generate step-
requires investment and reform in healthcare products and services change efficiency gains (3D printing)
GDP Contribution: $2 Trillion GDP Contribution: $4 Trillion GDP Contribution: $5 Trillion GDP Contribution: $1 Trillion
Source: Bain Macro Trends Group Analysis, 2011 6

7. Transforming Economy Requires a Different Approach
Global economy in midst of four-phase transformation from a
supply-based economy to a demand-based economy
Market Demand Demand-driven
Oversupply
Equilibrium Contraction
1991-2007 2010-2025
1947-1990 2008-2009
Supply-driven Economy Demand-driven Economy
 Oversupply worsens as supply chains grow in efficiency
 Demand return spotty and uneven, slower growing and more volatile
 Entering hyper-competition: Flat demand and significant increase in lower-cost supply
 Organic growth will be much more difficult
 Productivity, pricing, profit pressures
Companies that will win have a competitively advantaged, granular
If you have to ask your customer what they
understanding of profitable demand…
want, it is already too late…They are telling
…and proactively develop solutions and targeted innovations that your competitors as well.
anticipate customer need.
Source: AC Neilsen global economic research study across all industries;
SandP 500, completed 2011
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8. Transforming Packaging Reality
Global Packaging Market
2010 Total: $670 Billion 2014 Projected: $760 Billion
Other Other
Glass 5.1% Glass 4.4%
6.7% 6.6%
Paper Paper
31.4% Metal 30.9%
Metal
15.1%
15.9%
CAGR 3.3%
Flexible Flexible
Rigid Rigid
19.3% 19.5%
Plastics Plastics
21.6% 23.6%
Change
Platform 2010 2014 CAGR
'10-'14
Flexible $129 $148 $19 3.5%
Rigid Plastics $144 $179 $35 5.6% 58% ($54 billion) of
Paper $210 $235 $25 2.8% global expansion is
Metal $106 $114 $8 1.9% plastics and flexibles
Glass $45 $50 $5 2.6%
Other $34 $33 $(1) -0.4%
Total $668 $760 $92 3.3%
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9. Growth in Packaging Driven by Emerging Markets
Packaging consumption and growth rates by end use and region 2010 - 2016E1
Developed Markets Emerging Markets
South/
North Western Eastern
Region Australasia Japan Other Asia Central Africa Middle East World
America Europe Europe
America
Share of
22% 24% 2% 11% 24% 6% 6% 3% 3% 100%
consumption
By end-use
category
Food $206,377 54,077 58,144 4,605 23,774 33,808 11,491 8,718 5,964 5,796 206,377
Beverage $73,518 19,458 21,094 1,900 7,088 11,252 5,051 3,199 2,392 2,084 73,518
Healthcare $25,997 8,479 6,252 597 3,463 4,075 1,112 749 697 573 25,997
Cosmetics $18,557 4,282 5,081 341 2,230 2,771 1,092 2,092 241 427 18,557
Other consumer2 $79,907 22,763 21,973 1,418 9,438 13,836 4,213 2,914 1,837 1,515 79,907
3
Other $264,475 54,879 67,438 3,101 25,259 62,978 17,625 16,730 6,912 9,553 264,475
Total market size 163,938 179,982 11,962 71,252 128,720 40,584 34,402 18,043 19,948 668,831
CAGR 2011 - 2016E
< 2%
2 - 5%
> 5%
1 At cons ta nt 2010 pri ces , 2010 da ta for Gl oba l Ma rkets
2 Hous ehol d chemi ca l s , toba cco, el ectroni cs , DIY, toys
3 Indus tri a l , bul k, tra ns port
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10. A new middle class growing in emerging
markets…contributing $10 trillion growth
by 2020
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11. They live in a dozen emerging countries,
not only fast-growing BRIC nations
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12. Western multinationals expect to find 70 percent
of their future growth in emerging economies
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13. Changing our Marketing Focus
Sonoco’s Insights Capabilities
Lead/Expert Consult
 Primary Packaging  In-store Promotion  Other Promotion
 Design  Displays  Direct mail
 Engineering  Merchandising mix  Sampling
 Messaging/Claims  Cross merchandising  Demos
 Special packs  In-store POS  In-store media
 At-shelf presentation  In/On pack coupons  Out-of-store media
 Partnerships  Properties
 Events
Informed by Insights
Proprietary Consumer Research Suite
Customizable qualitative and quantitative methods
Rapid consumer feedback/insights to accelerate innovation
Ethnography Insight Groups Social Media Digital Surveys Eye-Tracking Various Data
CLT and One-on-One Analysis and Communities (Syndicated/Transactional)
• IRI
• A.C. Nielsen
LifeBytesTM • Euromonitor
Search • Dunnhumby
Technology
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14. Pepperidge Farm Case Study
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15. In the beginning…
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16. Consumers want Reclose
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17. Consumers want Reclose
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18. Consumers want Reclose
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19. Consumers want Reclose
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20. CPG’s want to maintain their brand in front of
the Consumer
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21. ®
Sealtab Reclose
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22. ®
Sealtab is a Win/Win Solution
 Meets consumer needs
 Reclose (freshness perception, product containment)
 Portability
 On-the-go convenience
 Easy to understand/easy to use
 Meets CPG requirements
 Runs on existing assets
 No capital required
 No negative impact to production efficiencies
 Keeps brand in front of consumer – no need to
repackage
 Integrates seamlessly into graphics
 Innovative packaging - differentiation from others on
the aisle
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23. Lego Solution
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24. Satisfy the Customer
Mission: Become the acknowledged
leader in high quality, innovative,
value-creating packaging solutions
that “Satisfy the Customer.”
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