New Stand-Up Pouch for Cheese

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NewStand-Up Pouchfor Cheese

• July 2012

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Stand-Up Pouch for Cheese

• Greatest Innovation since Zippered Shreds
• Same Amount of Cheese, Smarter Package

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Features

• Size Flexibility
• Less Film Corrugated Box
• More Pounds of Cheese per Truck
• Shelf Ready / Peg-Free Merchandising
• More Retail Facings per Section
• Consumer Friendly Stand-up Feature with Improved
  Zipper

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Consumer FeaturesSame Amount, Smarter Package

• Scored Header consistent opening
• Twin Track Zipper confident reclose
• Stands Up During Use less spills
• Right Size fits hand and product volume
• Stands on Fridge Shelf more visible
• Less Plastic positive ancillary benefit

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Retailer FeaturesSmaller Size, More Facings

• Improved Pack Out
• 2 more facings every 4 feet
• 2 more rows every 4 feet
• Merchandising Flexibility peg or shelf
• Euro-style Hole Punch more efficient
• Multiple Sizes right product mix

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Manufacturer Impact
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Pack Out Paradigms

• No Change (current to stand-up pouch peg)
• Current set packs out more bags if all pegs
  filled
• More 4 seal pack out vs. new Stand-Up Pouch if
  all pegs filled
• to the max
• Current package wins
• Change
• Stand-Up Pouch packs out more facings more
  inventory vs. 4 seal
• Stand-Up Pouch wins
• 3. Change (SUP shelves create a lot more
  facings)
• Stand-Up Pouch packs out more facings and more
  inventory
• Stand-Up Pouch wins hands down

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Paradigm 1 Current Peg to Stand-Up Pouch
PegFacings Remain the Same, Pack Out Decreases
Considerably

• Summary
• Limited view of whats possible
• Does not account for dimensional benefits of
  Stand-Up Pouch
• Assumptions
• Fancy shreds
• 15-inch peg bar
• 7 packages SUPs, 2-inch gusset
• 11 packages current
• Continue with 4 rows and 7 pegs per row in 4-foot
  set
• Pack out current 4-foot set
• 28 pegs x 11 packages 308 4 seal
• 28 pegs x 7 packages 196 SUP

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Paradigm 2 Optimize Peg Set for Smaller
Stand-Up PouchPack Out Facings and Inventory is
a Gain for SUP

• Summary
• Accounts for some benefits, 1 package/row, up
  to 2 more rows
• Assumptions
• 15-inch peg bar
• 7 packages / peg SUPs
• 11 packages / peg current
• 7 pegs x 4 rows 28 pegs current
• 8 pegs x 6 rows 48 pegs reset
• 20 more SUP facings in new set
• Pack out Optimum peg 4-Foot Set
• 28 x 11 per hook 308 current
• 48 x 7 per hook 336 SUP
• 28 more stand-up pouch packages of inventory

8 facings/row Stand-up Pouch, 7 with current
6 rows Stand-up Pouch vs. 4 rows with current
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Paradigm 3 Stand-Up Pouch ShelvingPack Out
Facings and Inventory Increases Considerably

• Summary
• Accounts for all benefits 2 facings/shelf, 2
  shelves
• Assumptions
• Fancy shreds, 2-inch gusset
• 20.5-inch shelf depth
• 9 facings / 6 shelves SUP
• 9 packages deep SUP
• 54 facings SUP shelf
• 26 more SUP facings
• Pack out in 4-inch Set
• 28 x 11 per hook 308 current
• 54 x 9 per facing 486 SUP
• 178 more stand-up pouch packages of inventory

9 facings/shelf Stand-up Pouch, 7 with current
6 shelves Stand-up Pouch vs. 4 rows with current
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Merchandising ImpactPack Out Changes are
Staggering

• Optimized Pegs with Stand-Up Pouch
• 20 more facings per 4-foot peg bar set
• 28 more packages per 4-foot peg bar set
• 120 more facings 168 more packages in a 24-foot
  peg section
• Shelving
• 26 more facings per 4-foot peg bar set
• 178 more packages per 4-foot peg bar set
• 156 more facings 1,068 more packages in a
  24-foot peg section
• Retail Benefits
• Easier merchandising, cross merchandising,
  rotation and filling
• Huge potential growth arena for Store Brands
• More facings and inventory at shelf level for the
  largest cheese category in the grocery store.

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Sustainability Pounds per Truck from 21,000 to
36,000