The Grocerʼs Bag Ban Kit Contents

PACKAGING

THE GROCERʼS BAG BAN KIT CONTENTS

• Step by Step Instructions to make the most of the bag bans of single use plastic grocery bags. • Access to Experts: we helped write the law to ensure the best solution for you, your customer and community • Retro t Kit Designs • Business Considerations: Challenges and Benets STEP-BY-STEP INSTRUCTIONS KNOW THE LEGAL BASICS*

OVERVIEW: California State Plastic Bag Ban, SB 270 would ban grocery stores and retailers with pharmacies from handing out single-use grocery bags (both non-recycled paper and plastic bags).

Bill prohibits future bag ban legislation except to raise the minimum fees. Any local laws passed prior to this date may continue to be enforced.

Effective July 1, 2015, retailers affected: Grocery Stores and Retailers with Pharmacies (10,000 square feet of retail oor space and annual sales of $2 million).

Recycled Paper Bag Requirements: • Charge a minimum of $0.10 cents • PCR in paper bags: 1. 40% post-consumer recycled material in paper bags 2. 20% post-consumer recycled material in an 8 point or smaller recycled paper bag. • Ensure proper labeling/print standards are met.

Reusable Bag Requirements: • Charge a minimum of $0.10 cents • Certi cation of reusable bag manufacturer (all types) • Report to the Department of Resources and Recovery with proof of certication and name of supplier of PCR. • Meet reusable bag durability and quality standards • Ensure proper labeling/print standards are met • Reusable plastic bags’ minimum thickness: 2.25 mil gauge • Volume capacity of 15 liters • 20% PCR minimum in reusable plastic bags by 01/01/16 • Increase minimum PCR content of reusable plastic bags to 40% by January 1, 2020. • Reusable bags made from natural or synthetic fabric (woven, non woven nylon, polypropylene, polyethylene-terphthalate, Tyvek.) fabric weight minimum of 80 grams per square meter.

Compostable bags oered in jurisdictions that meet specied requirements and ASTM D6400 standards must charge no less than $0.10.

*Highlights based on pending CA State SB 270 legislation (subject to change). Visit commandpackaging.com for details. KNOW THE BAG DIFFERENCES Important Distinctions for Staff and Customers

1. Fabric Bags – PROS: Popular with some customers. Easy to store and transport. CONS: Is not eectively recyclable or sustainable. Known to propagate bacteria if not frequently washed. Expensive for average customer. Sanitation concern for check-out clerks, cashiers and other customers.

2. Non-Woven Plastic Reusable Bags – PROS: Strong and provides attractive margins and branding opportunities. Available in many sizes. Can have a fabric texture. CONS: Not a recyclable product. Warnings of toxic lead paint residue in bags. Imported - Requires long lead times for ordering. Expensive to ship and store. Oen forgotten by customers due to lack of convenience. Dicult to wash and can harbor bacteria, creating sanitation concerns for check-out clerks, cashiers and other customers.

3. Recycled Paper Bags – PROS: Well accepted by consumers as a last option for a carry bag. CONS: Disposable. Can’t get wet. Not strong. High Carbon Footprint. Not sustainable. Recycling is expensive and impractical. Does not biodegrade in deep landlls. Shipping and storage costs are higher than 2.25 mil plastic reusable bags.

4. Smarterbags – PROS: e rst, truly sustainable grocery bag made from farming lm that is harvested as a reliable, sustainable source to make this specialized type of reusable grocery bag. It’s strong, easy to clean, folds in your pocket or purse. Fully recyclable so it never, ever needs to see a landll. e same cost as paper bags. Made in California. Many printing and promotional options. Tested and compliant to meet or exceed all bag ban ordinances. CONS: None Known PREPARE YOUR CUSTOMER:

1. Notify your customers that they will be paying for bags ahead of time. We recommend 90-120 days before the required dates. Some stores begin to sell even before the deadline at a lower rate and indicate a rise. 2. Provide a full array of reusable options: customers want to know that they have price and feature options. 3. Help Customers Understand the Fees: Stores have found that customers can get quite animated that they must pay for bags and store owners don’t wish to risk losing a customer at this last moment of sale. We recommend some form of formal training that includes a check out area sign with a short explanation of the bag choices the law allows and that you provide. Stores that have focused on this eort have maintained loyalty. ose that have not have lost customers. e key is for team members to be fully informed and able to communicate the benets of a reusable bag. BUSINESS CONSIDERATIONS

CHALLENGES 1. Long production lead times and/or supply disruptions for imported bags 2. Legal exposure on compliance due to chain of custody of PCR content, possible nes and bad PR for non-compliance 3. Paper is becoming scarce due to increased demand and single-use focus 4. Confusing misinformation that negatively impacts customers 5. Negative brand impact due to environmental backlash

BENEFITS of a smarterbag 1. Quick Turnaround and Lead Time (local production) 2. Unlimited Print and Promotional Options for holidays and seasonal needs 3. Lower minimums 4. NEW Partnership Programs – allow for advertising and partnership awareness to help oset bag costs. 5. Aordability 6. Reusability 7. Recyclability 8. Environmental and Business Sustainability

PACKAGING ACCESS TO EXPERTS

Access our experts at Command Packaging who were actively involved in making sure that the language of many of the ordinances include ample time and options for grocers impacted by the change.

More importantly, we are experts in understanding the best choices for your customers. We’ve conducted and validated research to determine the preferences of consumers and how such transitions impact the grocers’ brand, customer loyalty, and prots from the sale of grocery bags. We are happy to provide training and expertise to assist you in meeting bag ban requirements.

PACKAGING