MENASHA INNOVATIVE PACKAGING BY DESIGN

MENASHA INNOVATIVE PACKAGING BY DESIGN Kevin Konikowski Heather Hynes Wednesday, February 15, 2006 Media Industry Analysis

Introduction Packaging is an essential part of our world. It has become an integral part of our lives we use it not only to market and distribute products to the world, but also to preserve and protect perishable or easily damaged items as well. The goals of packaging are safety, convenience, and environmental friendliness. The primary goal is safety, while environmental friendliness is becoming an increasing concern throughout the industry. Around the world, programs and initiatives are in effect hoping to develop solutions to minimize negative environmental effects of packaging. This has started with promoting the use of recycled materials in packaging and is now a widespread practice not only within the packaging industry but throughout every industry wherever possible. Packaging has been used for centuries, but its use has grown exponentially during the second half the twentieth century in all industrialized countries. It has evolved from heavy containers made of wood and steel into specialized lightweight and flexible materials. It is lighter in weight, easier to open, dispense from, reseal, store and dispose than previous incarnations. Creativity and diversification are key elements of packaging design and implementation. Adhesives, metals, glasses, papers, boards, plastics, films, and woods are all used in combinations to achieve original designs that both catch the eyes of consumers as well as offer new innovative ways to increase shelf life of a product. (Packaging Council, 18) Packaging has been defined as all products made of any materials of any nature to be used for the containment, protection, handling, delivery and presentation of goods, from raw materials to processed goods, from the producer to the user or the consumer. The ultimate test of packaging is whether or not it performs its essential task - to contain, preserve and protect the product and to provide information about the contents of the package. (Packaging Council, 18) There are three traditional categories of packaging: 1. Consumer packaging or primary packaging, i.e., packaging which constitutes a sales unit to the final user or consumer at the point of purchase. 2. Grouped packaging or secondary packaging, i.e., packaging which constitutes, at the point of purchase, a grouping of a certain number of sales units, whether the latter is sold as such to the final user, or consumer, or whether it serves only as a means to replenish the shelves at the point of sale. It can be removed from the product without affecting its characteristics. 3. Transport packaging or tertiary packaging, i.e., packaging designed to facilitate handling and transport of a number of sales units or grouped packaging in order to prevent physical handling and transport damage. Increasingly, manufacturers are looking to merge - or better co-ordinate - the functions performed by these levels of packaging in order to reduce costs and facilitate good presentation. Packaging suppliers are helping to develop innovative ways to achieve this with the total cost being less than the sum of the original parts and with functionality either unimpaired or improved.

Executive Summary Menasha began as a small company and has worked their way to be one of the top competitors in packing. They currently are involved in retail merchandising with such products as point-of-purchase displays and their innovative Pack N Stack packaging. They are also making waves in food packaging with their celebrated Sunbrite Line and their standard breaking MenashaWare. Menasha s distribution and material handling is the most efficient way to protect, store and transport products. They are a quality name in the industry and have a large list of high profile clients. They are one of the largest privately held businesses in the United States yet they still take great pride in the family values that are so much a part of their history. History Menasha began in 1849 when companies in many different areas were searching for a way to transport their products to the customer. Menasha began to meet these needs by producing small wooden pails in beautiful Menasha, Wisconsin. In 1852 Elisha Smith purchased the company for $1,200. He ran the company himself, operating machinery and delivering products by horse-drawn wagon. During the Civil War the company expanded and began producing other types of wooden storage for the Union forces. They quickly became the largest woodenware factory in Wisconsin. In 1927, Menasha entered the corrugated box business and that has been a mainstay of their production ever since. Menasha Wooden Ware Corporation became Menasha Corporation, which is now a parent company that now works in promotion, packaging, marketing, reusable packaging and pharmaceutical printing and packaging. Menasha has spent the years since they acquiring new plants all around the country and building up their business. In 1994 Menasha increases its focus on point-of-purchase displays and dedicate an entire plant to the design and construction of product merchandising products. Currently Menasha has over 20 facilities in 13 different states. They are a leader in packaging and known for their quality and innovation. They have come a long way since their initial pail making days and continue to grow on a daily basis. Vision We are recognized as a high growth, action oriented, innovative provider of packaging products and services. Our customers love doing business with us. They trust us to significantly contribute to their business. Our people are the best. Work is fun and exciting and provides us challenging career opportunities, wealth, respect and joy. Honesty and integrity are the pillars of our success.

Markets Retail Merchandising Menasha specializes in the creation of high-end graphic packaging. They want to merchandize products that are not only attractive but also have a strong brand message. Menasha has an unrivaled collection of printing and structural design capabilities. They also employ award-winning graphic artists, dedicated customer service, and a full line of packout, fulfillment, and contract packaging services and offer a variety of retail merchandising options: Point-of-Purchase Displays o Their temporary POP portfolio includes Free-Standing Floor Displays Pallet Displays (full, 1/2, and 1/4 sizes) Counter Display Units PDQ Trays Standees Side Kicks / Power Wings Corrugated Retail Packaging o Their own staff award-winning graphic design team specializes in corrugated packaging, point-of-purchase displays and merchandising programs. Their creative team can see your product from concept to production or they can assist your creative team in any aspect of production. o They offer various different printing options so they can satisfy the diverse requirements of each customer. They offer flexo, litho, and digital printing, along with specialty coating options. Paperboard Folding Cartons o Menasha produces folding cartons and promotional items from various calipers of paperboard. They have capabilities for board weights from 18 to 40 caliper. o Through their world-class printing processes they can render dynamic color and graphics for high-impact graphics. o They can further enhance your projects with specialty coatings such as: Wax impregnation and wax coatings are excellent moisture resistant barriers Aqueous and UV coatings add moisture resistance, hinder abrasion, prevent skidding and create special finishing effects UV, applied in-line is the ultimate in gloss, for a premium quality appearance o They also offer precision die cutting. This allows their customers to have the up most creativity in their folding carton designs. Some of the most common configurations include: Autobottom (crash lock) Full Flap Autobottom Reverse Tuck End Seal End 6 Corners Beers Tray Sleeve

Pack 'N' Stack o Pack N Stack is a revolutionary line of packaging it is comprised of multiple layers of lightweight corrugated that are bonded together by a proprietary gluing process. o Pack N Stack delivers it s high quality packaging through the following attributes: Superior Stacking Strength Pack N Stack s remarkable structural integrity consistently maintains vertical alignment to improve in-store longevity and reduce product damage. Fast, Easy Set-Up All Pack N Stack merchandisers are one-piece construction and significantly reduce labor costs on the assembly line or at packout. Exceptional Graphics Pack N Stack features more printable areas than most traditional merchandising solutions. Vibrant graphics or informative text can actually adorn the inside of your package or display. o The Pack N Stack line has three different styles that all come pre-glued, and ready for use: Pallet Stacker - stackable container primarily used for full pallet programs Tray Stacker - highly versatile stacking tray that offers unprecedented set-up speed Display Shipper - features a closeable top and is typically used when individual shipments are required o Pack N Stack was initially designed specifically for in-store merchandising. It is commonly used as a solution for club and warehouse retail outlets. It is often used for displays that: Are difficult or time consuming to assemble Are in need of graphic improvement Are made of heavy grade material Do not maintain vertical alignment when stacked Do not utilize 100% of the pallet o Pack N Stack is a patented product of Menasha Packaging Company LLC Point-of-Sale Materials o Point-of-Sale Product Portfolio: Clip Strips Table Tents Shelf Danglers Shelf Talkers Window Clings Ceiling Hangers Posters Pole Toppers Dry Erase Board Hanging Tags Blister Packs Promotional Kits Contract Packaging o They have various packout, fulfillment, and warehousing services at various locations throughout the United States. Their contract packing operation is a 300,000 square foot complex is A.I.B. certified and includes automated processes, refrigerated storage, and a secure environment.

o o o There dedicated facility has the following capabilities Product Assembly Bundle Packing Shrink Wrapping Variety Packing Label Lamination Re-Packing Packout & Fulfillment Palletizing RF Sealing Warehousing Blister Sealing Order Picking Skin Pack Die Cutting Bagging Return Processing Retail Integration Institute The Retail Integration Institute is dedicated to integrating the merchandising strategies of leading retailers and top consumer packaged goods manufacturers to realize sales growth, improved profits, and cost-effective solutions. The four key areas of successful retail merchandising are: Inclusive Merchandising Structure This is an exclusive model to take products to market. The model is customized to a specific retail channel desired. Supply Chain Cost Reduction With this step the retail supply chain is focused on. They apply their packaging, merchandising, and material handling expertise to add efficiency and remove costs from the supply chain. Retail Insight - The RII maintains a constant vigilance over the retail landscape. They have developed relationships with leading retailers, highly accredited research firms, as well as their own in-house Retail Research Center to better understand the market, consumer trends, POP trends, and developments within the major retail channels. Product and Service Portfolio As part of Menasha Corporation they have over 155 years of manufacturing experience. Food Packaging They offer a wide variety of packaging solutions for the food industry. They have their celebrated Sunbrite Line, which consists of windowed folding cartons, cake circles, and paperboard baking trays. In 2003 they introduced MenashaWare which is the first ovenable corrugated baking tray in the United States. MenashaWare Ovenable Corrugated Trays & Pans o This line is completely innovative and FDA compliant. It is a cost effective alternative to metal, plastic, and foil pans. o This line consists of over 15 models specifically designed for bakery, pizza, and food service applications. Sunbrite Line o Gallery Ovenable Trays This line includes ovenable paperboard trays for bakery and deli

applications. o Window Bakery Boxes This line consists of picture frame window folding cartons. o Cake Circles & Boards Menasha s Golden Lace line of platforms use a warm gold with lace and a scalloped edge to create a sophisticated and luxurious presentation. Menasha s Satinseal line includes white corrugated cake circles, boards and trays that are specially coated for grease and moisture resistance. o Catering/Deli Boxes Coffee Carrier, Wine Carrier, Party Pack Distribution and Material Handling Menasha is a pioneer in corrugated packaging and thus is very experienced in developing solutions for protecting, storing, and transporting products. They manufacture regular slotted containers as well as heavy-duty bulk boxes that are created to meet stringent load and strength requirements. Menasha s corrugated fanfold is a versatile packaging solution for extremely long or odd-shaped products. They are prepared to deliver simple shipping boxes for customers many just want these brown box solutions. Menasha uses a combination of flexographic printing and precision die-cutting to produce costeffective containers that protect the product to the best of their abilities. Menasha operates the only stand-alone facility in the United States that is dedicated exclusively to the production of corrugated fanfold. Fanfold board allows you to reduce slow-moving inventory by saving storage space and eliminates make-shift cartons. This package consists of a bale of corrugated board usually up to 1,500 ft accordion-folded and scored to customer specs. Reliapak is one of Menasha s innovative lines of bulk containers. It was designed for the highest level of reliability and performance for solids, liquids, meat, and poultry applications. It is ideal because it is reliable and cost-effective at the same time. Lean Solutions is a team-focused approach that helps you positively impact your company s bottom line. They are created to give their clients considerable cost savings and increased productivity. A few of the key initiatives that define MENASHA s Lean Solutions approach include: SKU consolidation Inventory control and management Optimal labor utilization Freight consolidation and efficiency Administrative cost savings Menasha s Design-On-Wheels brings their packaging designers straight to your doorstep. This is the best way that Menasha can serve you they bring all structural design and prototyping capabilities to your business.

Key Clients Heinz Standford Expo Wilson Hershey Nivea Koss Kitchen Aid Craftsman V8 Pepperidge Farm Pillsbury CVS Competition Georgia-Pacific Corporation International Paper Company (IP) Smurfit-Stone Container Corporation (SSCC) Financial Information Annual Sales from December 2005 Revenue $550 million Reduced sales and administrative costs by $6.8 million Success Story MenashaWare is the first of it s kind. It began the era of Go Anywhere baking. They are a new line of baking trays that make it possible for bake goods to be moved from the oven to the store or served all in the same tray. MenashaWare is an oven-able, thermo-pressed corrugated baking tray. It is very cost effective alternative to all other types of pans currently used for mass-baked goods and is also display-quality. It can be used in both microwaves and conventional ovens so it is even more versatile and flexible. MenashaWare is FDA compliant and is produced in ASI and AIB certified facilities.

Conclusion + Future Menasha Packaging is the largest segment of Menasha Corporation consisting of state of the art corrugated plants throughout the United States. Menasha is renowned for quality craftsmanship and innovative design. An extensive portfolio of packaging and merchandising products is manufactured using a variety of sophisticated printing processes. In the future, purchasing and LEAN SIX SIGMA scorecards will be used to drive costs out of the business. Business intelligence systems will be implemented to support better manage and decision making. Equipment utilization improvements are expected through new forecasting and quarterly review processes. Employee training will be implemented around sales, LEAN SIX SIGMA and new computer systems. A structured customer sales strategy will be implemented via a new online marketing and sales process. Monthly report cards will be used to monitor new more aggressive employee safety initiatives. Sales and administrative costs will continue to be scrutinized. Menasha Packaging is a constantly growing, innovative company that will continue to do so in the future as they have for the past 150 years.

Conclusion + Future Gavin Williams (2005). Issues and Trends. Vol 18. http://www.packcoun.com.au/issues/issues18.html Menasha Corporation (June 2, 2003). New Product Anything but Just Another Cardboard Box. http://www. menasha.com/newsmedia/pressdetails.jsp?recid=111 Menasha Packing Corporation. (2006). Menasha: Innovative Packing By Design. http://www. menashapackaging.com/