A SMALL CAN, A BIG IMPACT

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1 A SMALL CAN, A BIG IMPACT Unilever invites competitors to adopt its Compressed technology to reduce the environmental impact of the industry. 50% LESS GAS 25% LESS PACKAGING Unilever 2015 A Small Can, A Big Impact 1

2 Same protection for users, better for the planet Imagine there was a way to reduce the impact of the aerosol deodorant industry s carbon footprint by a quarter without requiring any quality compromise or habit change from the deodorant user. It s a powerful thought and one that is very much a reality. The reengineered spray system behind Compressed means that a 75ml deodorant lasts just as long as a 150ml traditional deodorant but with half the gas and 25 per cent less packaging. The result is the same level of protection, a more convenient, portable design, and 25 per cent less burden for the environment. Unilever first announced a range of Compressed aerosols in 2013 and a growing number of people have already made the switch to this more sustainable alternative. Last year in the UK, over 50 per cent 1 chose to buy Compressed. This is a trend increasingly replicated in France and Germany, who launched Compressed a year later (33 per cent 2 and 30 per cent 3 respectively). Such adoption has already helped save approximately 800 tonnes of aluminium in Europe. In the UK alone, that number is around 580 tonnes (more than 250,000 bicycles) and the equivalent of a 7,000 tonnes CO2 decrease. Unilever has a vision of a future in which Compressed becomes commonplace across the aerosol industry and so welcomes the introduction of Compressed products by other manufacturers. Why? Because if every spray deodorant sold was Compressed, the aerosol deodorant industry s carbon footprint would be reduced by 25 per cent. 1 `Nielsen data, Universe for GB is Grocery Mults Exc. Boots, Data is 52we 27 Dec 2014` 2 `Nielsen data, Universe for France is TOTAL HMSM AVEC HD, Data is 52we to 28 Dec 2014` 3 `Nielsen data, Universe for Germany is LEH+DM, Data is full year to wk ` Unilever 2015 A Small Can, A Big Impact 2

3 Supporting Compressed adoption across industry To make it as easy as possible for users to trade their regular-sized can for a smaller, more sustainable alternative, Unilever is inviting its industry colleagues to use the term Compressed (excluding the leaf design) in their product marketing and adopt a green band design that marks these new deodorants out from less sustainable aerosols. This move is proposed by Unilever to make it simple and transparent for consumers. Typically Unilever has used a 2x Compressed rate (e.g. 75ml=150ml) and recommends that other manufacturers use the same simple approach so consumers understand that with half the amount of gas, a Compressed product can truly last as long as a less efficient one with twice the gas. Unilever asks that brand equity in the names, shapes and appearance of Unilever brands like Dove, Rexona and Axe are respected so consumers can make clear and informed purchase choices. Convincing consumers in store The in-store presentation has been critical in reassuring users that Compressed deodorants are a new proposition that last just as long as the regular aerosols. One of the major success factors has been the height boosting trays which help to reassure on value for money as well as communicate the proposition. Unilever 2015 A Small Can, A Big Impact 3

4 How to make a Compressed aerosol: a simple guide Unilever has created the following simple guide for manufacturers looking to develop a Compressed deodorant, aimed at assisting other manufacturers understand the approach Unilever took in developing Compressed. It also makes clear which suppliers have been integral in assisting Unilever get this technology to market Identify the regular product to be compressed, both the size of the can and how long it lasts for consumers. We chose 2x compression, in a smaller can, which allows us to keep the same pack-life as consumers currently experience with a regular aerosol. This way we kept the maths and comparability vs the original can easier for consumers to follow knowing this is a relatively low interest category that people don t want to spend too long thinking about. This makes the transition for consumers from regular to compressed aerosols as easy as possible, as there is no change in habit required. Reduce the amount of propellant used per can as needed, whilst keeping the same amount of active and key ingredients delivered per second to the underarm. The exact reduction depends on the specific formulation, and is achieved by reducing the volume of propellant added to the can, in steps, and assessing the product delivery level, until the desired output is achieved. For most of our products, the reduction is to half the normal level. Keep the gas composition and pressure the same as that used for a regular aerosol. This keeps the amount of time a consumer uses to apply the product the same as a regular aerosol. In order to achieve this, you also need to reengineer the spray system, through modification of the valve, so that the spray rate is adjusted relative to a regular aerosol. Valve (Mounting) Cup Cup (Outer) Gasket Stem (Inner) Gasket Stem Spring Stem orifice Vapour entry Liquid entry Housing Can Diptube This was done through rebalancing the size of the orifices, changing the hole sizes that control the balance of vapour and liquid that enters into the valve. The size of the vapour entry is changed to achieve a ratio vs liquid entry of around double that of a regular aerosol, whilst significantly reducing the size of both entry points to achieve the desired spray rate. In addition, there is now only 1 stem orifice in the system. This development was done in collaboration with our global valve supplier partners, Lindal and Coster. It is not necessary to make any changes to the specification of the active ingredient or any of the other ingredients as long as they are of good quality. Checks must be conducted to determine if the fragrance needs to be adapted to be stable in the new formulation. Ensure consistency in the product particle size as much as is needed, in order to ensure that any potential blockage issue for consumers is minimised. This is dependent on the specific formulation and active source. Reduce the size of the can, whilst considering the relevant supplier and manufacturing capability, to ensure that the number of uses a consumer gets per can remains the same as a regular aerosol. Follow your best manufacturing practices to ensure the optimal spray quality and product experience throughout the pack life for the consumer. Unilever 2015 A Small Can, A Big Impact 4

5 Compressing the future Encouraging consumers to swap traditional products for new ones will always be a challenge for any industry, particularly when most people have grown up with a product format that has remained virtually unchanged, and shopping habits are well ingrained. However, Unilever believes that with a clear industry communication of the consumer and environmental benefits of Compressed products, the necessary transformation can happen. Join in making commonplace in the aerosol deodorant industry. Unilever welcomes the introduction of Compressed as commonplace across the industry. But we also know that despite good intentions, many people don t want to select a greener product if it means having to compromise on quality or convenience. Our job as manufacturers is to show them that with Compressed, they can make a sustainable deodorant choice without compromise: there is no trade-off. Users get all the benefits they currently enjoy with larger cans. TAMARA ROGERS, SENIOR VICE PRESIDENT, DEODORANTS, UNILEVER Waste not, want not As part of the Sustainable Living Plan, Unilever is committed to halving the waste associated with the disposal of its products by Through efficient pack designs, new technologies and the innovative use of materials, we have already reduced our waste impact by around 11 per cent since Compressed will be a vital part of achieving our target and one that we also believe can have a far-reaching impact across the industry. Why call it Compressed When applied normally, a Compressed deodorant offers the same amount of protection as a regular-sized deodorant. Therefore, it is not a concentrate, more potent or more powerful. Equally, it is not a Compact aerosol, which could be misconstrued as just smaller. As this new format works just as well but with less gas, Compressed is the simplest way of explaining the innovation to consumers. This is why Unilever has used the same logo and green band across all of its brands. Unilever 2015 A Small Can, A Big Impact 5

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