Market drivers and keys for successful innovation in beverage caps and closure markets

1. Cape Decision
John F. Schrurs
Cape Decision ltd
Caps and Closures
Market drivers and keys for successful innovation
Petcore conference
11-12th October 2006
Barcelona

2. Cape Decision
Agenda
1. Market survey
2. Market drivers
3. Impact of PET evolution
4. Impact of consumer preference
Page 2/19
PET
Closures
Consumers

3. Cape Decision
1. Market survey
CARBONATED SOFTDRINKS
Alcoa CSI Wing-Lok®
Profile :
. a low-cost, efficient closure (returnable and one-way packages)
. safety (venting slots and visual)
. sealing (top & side, 2-piece)
. printable (UTC, multicolor, variable)
. 28-38 mm
. robust (hot/cold fill), high speed
. polypropylene and liner
Page 3/19

4. Cape Decision
1. Market survey
CARBONATED SOFTDRINKS
Bericap 28 mm 7056 Polycap DS
Profile :
. a low-cost, efficient closure for non-returnable packages
. safety (slitted drop band)
. sealing (linerless double seal ®)
. printable (embossing, laser printing)
. 1-piece HDPE
. PCO/BPF
Page 4/19

5. Cape Decision
1. Market survey
STILL WATER
Alcoa CSI Aqua-Lok ®
Profile :
. a still-water one-way closure
. safety (visual/tactile confirmation)
. sealing (by design)
. colours and laser marking
. 30.25 mm
. coldfill, light topload
. one-piece PP
Page 5/19

6. Cape Decision
STILL WATER
Bericap doubleseal TM
Profile :
. a still (and carbonated) water PET one-way and refillable closure
. safety (drop band or “pigtail”)
. sealing (doubleseal)
. printable, embossing, UTC
. 30.25 mm
. hot-coldfill, aseptic
. one-piece organoleptic HDPE
1. Market survey
Page 6/19

7. Cape Decision
1. Market survey
JUICE, ISOTONICS, TEA
Alcoa CSI Euro-lok®
Profile :
. a closure for one-way HDPE, PET and glass containers
. safety (flexible liner with option for oxygen barriers)
. sealing (top and side sealing)
. multi-colour and embossing
. 33/38 mm
. hot/coldfill/aseptic/pasteurized
. 2-piece PP
Page 7/19

8. Cape Decision
1. Market survey
SPORT DRINKS
Alcoa CSI Sport-Lok®
Profile :
. a one-way closure for non-pressurized beverages
. targeting active consumers
. safety (cap-shell stays on the bottle, combined with tactile,
visual and audible evidence)
. sealing (no liner)
. multi-colour, printing on dust-cover
. quick to open, optimized water flow, orthodontic design, dust cove
. coldfill aseptic filling, lightly carbonated
. 3-piece PP-HDPE
Page 8/19

9. Cape Decision
1. Market survey
SPORT DRINKS
Bericap Push-Pull
Profile :
. a push-pull closure for still water beverages in one-way PET
. safety (drop band)
. sealing (bore seal or alu foil option)
. coldfill filling, aseptic (with foil)
. 3-piece : organoleptic HDPE pourer, PP dust cover, LDPE shutter
Page 9/19

10. Cape Decision
1. Market survey
SPORT DRINKS
“The Original” Seaquist
Profile :
. a bi-component flip-top closure for one-way PET
. safety (easy to grip tear-off band)
. sealing (plug seal – no liner needed)
. multiple colours
. 28, 30, 38 mm with active hinges
. 3 liter/min flow rate with easy opening (< 15N)
. PE (mouthpice) guarantees organolepsy
. High transparent PP (body and lid)
Page 10/19

11. Cape Decision
1. Market survey
BEER
Bericap BO2”S”® slitted drop band
Profile :
. a closure engineerd for one-way PET beer packaging
. safety (moulded “pig-tail” band)
. sealing (barrier/oxygen scavenger, free rotating liner for beer)
. inside + laser printing
. 28-38 mm
. coldfill
. 2-piece (PP, barrier/oxygen scavenger)
Page 11/19

12. Cape Decision
2. Market drivers
Beverage
Industry
TechnologyConsumers
Page 12/19

13. Cape Decision
2.1. Beverage industry
- extensions, shift and growth
- water, health, csd, juice, energy, beer
- penetration of closure intensive plastic
packaging
- enables differentiation
2. Market drivers
- consolidated closure industry *
- structure :
- top 10 players = 60%
- production : 160 Bio units
- 2/3 beverage
- 1/3 non-beverage
- 40% plastic (50% in 2009)
- 3-year growth rates :
- standard beverage : +6%
- custom beverages :+12%
- non-beverage : 0%
- average total : +6%
- geographical
- France : mineral water manufacturers
- Germany : personal care, cleaning
(*) AMI, 2005 press release
Page 13/19

14. Cape Decision
2.2. Consumer behavior
- tamper-evidence, safety and quality
- functionality : closure > container
- higher demand for convenience and dispensing products
- momentum in material transitions
- changing consumer needs and need for new consumption experiences
2. Market drivers
Page 14/19

15. Cape Decision
2.3. Technology
- systems approach
- technology developments
- “more for less”
- product integrity developments
- longer term innovations
2. Market drivers
Page 15/19

16. Cape Decision
Caps and closures
PET trends
1 Increased use Performance PET Convenience Recycling2 3 4 5
3. PET impact on caps and closures
Extensions
2 Functionality
development
3 Performance
closures
4 Intelligence1 Consumer
knowledge
5 Recycling
Page 16/19

17. Cape Decision
4. Consumer preferences impact on closure manufacturers
Consumer trends
1 Ultra-
convenience
Changing
needs
Hyper-
differentiation
Packaging+ The planet2 3 4 5
Page 17/19
Caps and closures
2 Functionality
development
3 Performance
closures
4 Intelligence1 Consumer
knowledge
5 Recycling

18. Cape Decision
Agenda
1. Market survey
2. Market drivers
3. Impact of PET evolution
4. Impact of consumer preference
PET
Closures
Consumers
Page 18/19

19. Cape Decision
Cape Decision ltd
innovation business support
J. F. Schrurs
john@capedecision.com
M +32 498 53 04 58
www.capedecision.com
Page 19/19