Labels Matter in Food Packaging Kyle Strenski Director, Global Business Development Booth LS-6453 a Recipe for Success

Labels Matter in Food Packaging Kyle Strenski Director, Global Business Development Booth LS-6453 A recipe for success

• The vast majority of packaging is food-related. – Food labeling applications are some of the most diverse in the industry

• Food packaging labels are expected to conform to a variety of packaging types, provide eye-catching branding to motivate point-of-sale purchases and communicate critical nutrition information, like product ingredients and “sell-by” dates.

2 | © UPM Today’s agenda

• UPM Raflatac and pressure sensitive labels at a glance

• Are your labels safe?

• Stand out on the shelf: Branding with labels

• Enable a circular economy with your labels

3 | © UPM Label stock value chain

4 | © UPM Self-adhesive label stock

Adhesive Matrix

Release coating Face material

Release liner Self-adhesive label

5 | © UPM UPM RAFLATAC Labeling a smarter future

PRODUCTS AND END-USES • Self-adhesive label • Home and personal care • E-Commerce and retail materials for product • Food and beverages • Transport and logistics and information labeling • Pharmaceutical

6 | © UPM Today’s agenda

• UPM Raflatac and pressure sensitive labels at a glance

• Are your labels safe?

• Stand out on the shelf: Branding with labels

• Enable a circular economy with your labels

7 | © UPM Who is responsible for food packaging?

• The responsibility rests with the food packer or brand owner to evaluate its packaging materials, ensure that they comply with the relevant regulations of the FDA, and confirm that the materials are safe for their intended use. • Brand owners may rely on reasonable assurances provided by their suppliers.

8 | © UPM Regulation overview

Labels used on food packaging may need to address certain regulations.

To ensure compliance when choosing a label for food packaging it’s important to: • Understand and interpret applicable regulations of concern • Understand how and where a label may be applied • Consider the possible migration of substances from the adhesive into the food, which may affect the organoleptic properties (look, feel, smell, taste) of the food

9 | © UPM FDA food additives

• A food additive is defined in Section 201(s) of the Federal Food, Drug, and Cosmetic Act as “any substance the intended use of which results or may reasonably be expected to result, directly or indirectly, in its becoming a component or otherwise affecting the characteristic of any food...”

• The FDA differentiates between “direct” and “indirect” food additives, not direct or indirect food contact

10 | © UPM Is it a direct or indirect food additive?

Direct Substances deliberately added to food: • preservatives • colorings • artificial flavorings

Indirect Substances that are not intended to be added directly to food, but come in contact with the food as part of: • packaging • holding materials • processing

11 | © UPM Regulation of food packaging adhesives

• FDA’s regulation at 21 CFR § 175.105 (“Adhesives”) identifies substances that may be used in food-packaging adhesives, subject to certain restrictions. • Namely, food-packaging adhesives must be either separated from food by a “functional barrier” that prevents migration of substances from the adhesive to the food, or used subject to the following limitations: i. In dry foods: The quantity of adhesive that contacts packaged dry food shall not exceed the limits of good manufacturing practice. ii. In fatty and aqueous foods: The quantity of adhesive that contacts packaged fatty and aqueous foods shall not exceed the trace amount at seams and at the edge exposure between packaging laminates that may occur within the limits of good manufacturing practice. The brand owner must determine if the packaging meets the requirements of the regulation for their specific end use.

12 | © UPM Labeling packaged food

• When applying labels to food packaging, it is important to determine if the packaging serves as a functional barrier between the adhesive and the food. • According to FDA, glass and aluminum are considered absolute barriers to migration of substances on the non food contact surface. • In the case of most plastics and paper/carton materials, because of the variety of packaging processes and raw materials used, a simple “functional barrier” may not be given. – The type of packaging substrate, exposure to environmental conditions, as well as the nature of the food being packaged are just some of the considerations to be taken into account in determining whether an effective barrier is present.

13 | © UPM Direct food surface contact

• Pressure-sensitive adhesives also may be applied directly to food. • One such example of direct contact of the adhesive with food is the labeling of fresh fruit and vegetable skins/rinds, which may or may not be edible. – In these cases, no functional barrier exists between the label and food – This label adhesive may comply with 21 CFR §175.125(b) (“Pressure-sensitive adhesives”), but other FDA regulations or exemptions may be applicable to the label components as well – The adhesive, face stock, inks and varnishes all must comply with the FDA’s regulations.

14 | © UPM What does this mean for brand owners?

As a brand owner, some questions you should be prepared to answer include: • Will a functional barrier be present? • Will the label be applied directly to food? • What types of food are involved in the application? • What components of the label will have direct contact with food? • What temperatures will the food or food packaging be exposed to?

You should also ask your label converter about the FDA compliance of the inks and varnishes used on press and their potential migration risks.

15 | © UPM Today’s agenda

• UPM Raflatac and pressure sensitive labels at a glance

• Are your labels safe?

• Stand out on the shelf: Branding with labels

• Enable a circular economy with your labels

16 | © UPM Drive sales with clear packaging

• In recent years, brand owners have sought clear packaging paired with a “no-label look.”

• Clear packaging enables manufacturers to showcase food quality and motivate purchases when buyers walk supermarket aisles.

• Increasingly, clear packaging isn’t just about glass and rigid plastic. Flexible pouches, transparent wrappers, and PET clamshells are also growing in popularity.

17 | © UPM Differentiate your package with full wrap

18 | © UPM Full wrap

• Self-adhesive full wrap solutions open your food products to a whole world of label shapes and materials.

• Ideal for several types of packs, such as vacuum skin packs, thermoformed MAP packs as well as trays and clamshells.

• Maximize the size of the area for branding and product information and do not block product visibility.

• They also allow for promotional possibilities (e.g. a loyalty campaign) on the reverse side that are visible only after purchase. 19 | © UPM Decorative label face materials

• Can be used to create high-quality, visually stunning labels that will help your brand stand out on the shelf.

• Give a premium feel and look to showcase the best of your brand.

20 | © UPM Today’s agenda

• UPM Raflatac and pressure sensitive labels at a glance

• Are your labels safe?

• Stand out on the shelf: Branding with labels

• Enable a circular economy with your labels

21 | © UPM Transitioning to a Circular Economy

| © UPM UPM Raflatac has signed up to the Ellen MacArthur Foundation’s Global Commitment UPM Raflatac has committed to develop label solutions and partnerships that support brand owners in eliminating unnecessary plastic packaging and achieving their target of 100% reusable, recyclable or compostable plastic packaging by 2025

| © UPM UPM Raflatac Forest Film™ A RENEWABLE INNOVATION TO GO BEYOND FOSSILS

We support the circular economy by The first wood-based polypropylene It is a drop-in solution: it can innovating circular labeling solutions. film label material in the markets. It smoothly replace traditional We aim higher by making sure that is produced from UPM’s BioVerno fossil-based options as it is the raw materials we use are as naphtha, an ideal biocomponent for identical in quality and sustainable as possible. By replacing replacing fossil-based raw materials performance to conventional fossil-based raw materials with with sustainably sourced renewable fossil-based films. renewable ones we can ensure a truly feedstock. sustainable packaging solution. Forest PP Clear FTC 50

|1.8.2019 © UPM UPM Raflatac Forest Film™ raw material supply chain

ISCC Certified

UPM* UPM Resin Film UPM Brand Forest Converter Retailer Consumer Pulp Mill Biofuels producer producer Raflatac Owner

Raw material UPM Biofuels uses the tall-oil based residues The whole supply chain, from renewable from UPM pulp production to create UPM naphtha to Raflatac will be ISCC certified, so supply chain BioVerno Naphtha, which is then used as a raw that the origin of the raw material can be verified material for plastic film. and the traceability of the raw material remains.

ISCC: International Sustainability and Carbon Certification *may include other suppliers

• Our unique Forest Positive lifecycle approach goes beyond deforestation to actively enhance natural capital.

• Food applications include: – Chill or frozen packed, labeled, stored – Ambient packed, labeled, stored

• Carbon Positive – 20% more than standard paper labels – Forests used producing RAFNXT+ labels absorb more CO2 than emitted across the label lifecycle from initial wood harvesting to final label application.

• Positive for Nature – Not only ensures net zero deforestation, but is also proven to actively promote biodiversity, improve water quality and enhance the ability of forests to mitigate climate change.

• Resource optimization – Uses less energy and water and generates less waste during its lifecycle, compared to standard labels.

• 100% certified forests – FSC® or PEFC™ standards.

• APR recognized constructions featuring RW85C wash-off adhesive

• Special adhesive formulation washes off cleanly, allowing easy recovery of high-value PET flakes

• Available with clear, white, or metalized PP film face materials and a 90% recycled content PET liner

• Replaces virgin fossil PET solutions with an ultra-thin, recycled PET 1.2 and 0.92 mil PET film face and liner • Enables waste reduction, packaging reduction, fewer roll changes and lower transportation costs • Helps brand owners and end-users achieve ambitious sustainability targets and recycled content goals • Supports the circular economy with raw material sourced from recycled PET bottles • Allows cans labeled with Vanish PCR to be recycled using conventional techniques • Ideal for food, beverage, home and personal care applications

EQUIVALENT TO POWERING A TYPICAL - 24% HOUSEHOLD FOR 145 YEARS

EQUIVALENT TO PRODUCING 737 - 20% BOTTLES OF WINE

EQUIVALENT TO 146 TRANSATLANTIC - 21% FLIGHTS (PER PASSENGER)

Material circularity given liner into recycled content – circular economy

Based on UPM Raflatac’s LCA study and performed in accordance with ISO 14040/44 standards

Sustainability enhancement Potential cost savings Save costs, or even turn Our solution is a prime waste into source of example of circular income, on waste disposal economy and helps you by leaving the label liner to build your responsibility waste management to us reputation by achieving your waste recycling targets

Easy to operate RafCycle is easy to operate. Save time and effort by leaving the waste pick-up to us

• Your food labels must be food safe. • They offer you the one of your best opportunities to present your brand to consumers. • You can do all of this with sustainable labeling solutions!