New Pouch For North America

Tom Martin

V.P. New Business Development

T.H.E.M.

Presented by

• The Snapsil Packaging Technology

Disruptive innovation & proven machinery

• Path to market and related synergies

Validated model and suppliers

• Potential market impact now and downstream

Consumers like it

Key Takeaways

Scalable

Page 3

• Snapsil initially introduced in North America several

years ago

• Unique injection-molded formats

• Generated significant “interest”

• Complex supply chain with limitations

• No commercial results

Background Summary

Page 4

• Snapsil management team simplified the business

model and supply chain

• Initiated 3 years of complex, technical due diligence

• Resulted in global agreement with Multivac

• Form/fill/seal on (Multivac) platform with

comprehensive capabilities and global scale

• T.H.E.M. formally entered the venture to coordinate

and assist in the development of the NA market

Current Situation

Commercial Application- Australia

Validating Easy Open or Ease of Use

Premier research facility in this field is Georgia Tech Research Institute (GTRI).

Snapsil has engaged GTRI in early stages of development and passed the

criteria set out for “approved ease of opening” qualifications.

This leads onto endorsement from other professional associations such as “The

Arthritis Foundation” which require a GTRI “pass”. Each new product would

require individual certification.

Consumer Need

Why?

Aging population, reduced mobility or just

giving a better customer product satisfaction

Packaging sounds contribute to the overall product experience.

Packages with auditory cues around opening and closing are a reassuring indicator of freshness.

Portion Control Premeasured packs provide portion

control and single serving solutions

Auditory Cues The snapping sound cues that the product

is opening for the first and only time

Freshness Single use can provide sterile

and fresh dosed products

You can feel the innovation.

I can really see this working for

powders like Crystal Light or in

hospitals for really sterile things.

– Ann Arbor

Snapsil Key Attributes

Auditory Packaging Cues

Tubes

6mL - 40mL

Squeeze

6mL - 40mL

Dispense

6mL - 40mL

Crush

10mL - 50mL

Single Bottle

50mL - 250mL

4 Pack Bottle

25mL -100 mL

Core Packaging Formats

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Target Range

Metal Cans/Shots Hotel Amenities

Yogurt Condiments

Personal Care

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Target Range

Gum Nutritional

Dressing

Water Enhancers Beverage Enhancers Pet Treats

Snapsil Focus Segments

Market Focus

Segment

BEVERAGES • Coffee

• Additives

• Water

• Fruit

FOOD LIQUID • Sauces

• Dressings

• Cooking

Sauces

FOOD DRY • Spices

• Baby Formula

DAIRY • Cheese

• Yogurt

CONFECTIONARY • Gum

INDUSTRIAL • Refill

®

Toothbrush Concept Syringe Concept

Custom Snapsil design applications can be developed for customers

on a design fee basis for high value projects

Refill Concept

Snapsil Custom Designs ®

• Supporting 7 core patents in multiple territories

• Expanding IP portfolio

• Progressing in core technical and

commercial territories

• Summary – USA, Europe, Japan, China,

India, Australia/New Zealand, Brazil, Korea

• Latest update – Patent 6 – “P4 Snapsule

allowance in the US” – March 2013

IP Updates

• Consumers noted that Snapsil products are best used for powders and liquids

– Future market segment opportunities beyond food include medicine,

single use durable and industrial use

• Opportunities for improving Snapsil included added a reseal function, having a fully clear

package, added firmness and increased squeezability

Likes

Packaging Deep Dive: Snapsil ®

• Single use

• Easy to open

• Fun/interactive

• Active “snapping”

Snapsil Consumer Response

Video Excerpts

1 minute 55 seconds

Optimize and simplify Snapsil

‘path to market’

Disruptive technology/not

supply chain

Work with Multivac to support

development

Conduct trials including for

consumption

T.H.E.M. Role in Snapsil Launch

FDA-Registered

Contract Packaging

Very similar to Sanko stick pack role

and Zipbox®

Multivac Technical Partnership

• Technical introduction in December 2010

• Initial testing completed in Australia with Multivac using gas flush lidding system

with premade shell units and coffee products

• 2x multiple test cavities located at Multivac Wolfertschenden Test Application Centre

• 15 different base web formulation and structures tested across application machines

• 7 product shelf life production test runs completed

• Multiple tool and product refinements determined with testing program

Manufacturing Production Technology

Thermoformed Shells

• The break function is created by stress concentrations and material properties

• The break zone is a full thickness section of the wall which ruptures when stressed and folded

Advantages

• Can be premade as base shells or produced with Inline Form Fill Seal Systems

• Barrier level of package is not effected by the snap feature

• Can be made permeable though to ultra high barrier

• Clear options are available

• Low cost

• Gas Flush MAP processes possible

on FFS systems

• Materials development process is ongoing –

new materials and structures

Manufacturing techniques for Base Shells

Entry Level System – R245

High Performance Thermo-former.

Modular design

Durable stainless steel construction

Patented hygienic chain guide design

Industry-leading hygienic design

Full wash-down (IP 65)

CIP compatible

Comprehensive safety systems

Open architecture IPC control system

Touch screen control panel

Production data acquisition and storage

Cut-off length up to 640mm

State-of-the-art lifting system

Unlimited flexibility in use of materials,

cutting systems and formats

Maximum flexibility in defining product loading area

Easily accessible machine frame

Nominal machine width: 320, 355, 420, 459, 560mm

Special machine, nominal width: From 220mm to 560mm in intervals of

5mm possible

Maximum cut-off lengths: Die, with preheating: up to 400mm

Die, without preheating: up to 640mm

Machine lengths: 5500mm - 13500mm

Maximum forming depth: Maximum 150mm, depending on equipment

Multivac Technology

100 ways to skin a cat

Standardization – Key to supply efficiency. Customization is possible.

“WE CAN DO ANYTHING – IT’S JUST A MATTER OF COST!”

Multivac Technical Sales Manager

Machine widths - 420mm is the common frame size

Index length – Tooling length- set on the system (vacuum forming assembly, vacuum/gas flush chamber – distance between the two)

Forming – Preheating (upper and lower is required for Snapsil forming) – single station not suitable

Plug assist – Required for most formats

Filling – Open format area – static or fill during index

Indexing – Full servo speed control and profiling

Print registration – Film stretching system- all printed to webs are printed with a +0 - #mm repeat to allow for this

– Heavier film require heavy duty registration systems

– Base web print registration possible (pre-distortion print and or low draw depth)

Sealing – Long slow seal cycle – high pressure silicon support platens

Vacuum Gas Flush – Standard feature

Dual Forming Dual Sealing Systems – Tandem machines

Cutting Options-

Long cutting – Generally pressure knives - straight/ perforation / strip cutting (vacuum scrap removal or mechanical winding)

Cross cut – Crush knife (star corners), servo profile cutters (static or servo carriage), shape cutting (punch and die)

Laser cutting – No longer offered

Multivac Technology Basics Summary

Additional

• Web printers – date coders

• Rapid tool change draws

• Labellers

• Custom software

• Jumbo unwinds

• Robot loaders

• Robot unloaders

• Top web formers

• Eco options

Multivac Technology Basics Summary

Optimum Configuration

2 X 16 (or 20) 14ml index length for machine set up – preheat plug assist

3 x 16 (or 20) 6ml

Squeeze knife long cutting

STS - ## (servo carriage – cross cut -3mm strip punched out of web)

Manual forming and sealing die change – 1-2 hour (TBC) setup change for

a tooling set at most

Filler will not require changing

Multivac Technology Snap Open System

Manufacturing Production Technology .

Inline Form Fill Seal

• Production & Lidding Solution

• Validated partner Multivac

Manufacturing Production Technology

Snapsil Technology Review ®

A patented, easy open design feature for injection moulded or thermoformed packs.

While the feature may give some degree of reclose, it is not a reseal system.

What is Snapsil Opening Technology? ®

Stress concentration Opening propagation

The core of Snapsil® technology is a snap opening feature in the base of a rim sealed container.

The opening is created material created by stress concentrations and material properties.

Finite element modelling

Snapsil Technology? ®

The Snapsil opening system can be created in two separate patented methods

producing the same result in differing ways

• Tensile frangible break – Injection moulded materials

• Tensile fracture break – Thermoformed base materials

Snapsil Technology ®

Reduce – Thin-wall, lightweight structures reduces source materials needs

Portion control packaging reduces food wastage and landfill

Snapsil® has a high supply chain efficiency that reduces freight and storage impacts

Snapsil Sustainability Benefits - Environment ®

Scups

20mL - 150mL

Coming soon to Snapsil core range ®

• The Snapsil Packaging Technology

Disruptive innovation & proven machinery

• Path to market and related synergies

Validated model and suppliers

• Potential market impact now and downstream

Consumers like it

Key Takeaways

Scalable

Machinery

Packaging Materials

Technology

Total System Approach

Manufacturing materials for Snapsil Thermoformed Packaging

• Base web materials are based on Styrene structures

• Current barrier materials tested are based on EVOH laminates

• Both extrusion and adhesive laminates have been used successfully

• Barrier levels down to 0.1cc/m2/24hrs have been successfully tested

• Squeezable / crushable structures available

• Independent validation process being developed for suppliers to test base shell materials.

• Materials are available globally

Manufacturing Techniques for Base Shells

Page 33

Packaging Material Providers Base and Lidding

E.G. Bemis/Curwood

Snapsil® / T.H.E.M. Pack (cavity) design

FDA facility

Scale-up & Packaging

Multivac Machine solution

Comprehensive design and development support

Machine sale

Machine change parts

Service and support

Customer

Commercial

Transaction

Start to finish support and capabilities from

initial concept to mass scale-up

Design and project fees

Licence fee

Exclusivity fee by exception

Contract packaging

Preparation costs

Material sales

Expand material

choices

Co-

Packers

Snapsil Business Modal ®

Thank you!

Presented by

Tom Martin

V.P. New Business Development

T.H.E.M.