Food Containers Pages: 238

Freedonia Industry Study #1198 Study Publication Date: December 1999 Price: $3,600 Food Containers Pages: 238

U.S. demand for food containers is expected to increase 3.3 percent per year through 2003.

Food Containers, a new study from The Freedonia Group, is designed to provide you with an in-depth analysis of major trends in the industry and the outlook for product segments and major markets -- critical information to help you with strategic planning.

This brochure gives you an indication of the scope, depth and value of Freedonia's new study, Food Containers. Ordering information is included on the back page of the brochure.

Brochure Table of Contents

Study Highlights ...... 2 Table of Contents and List of Tables and Charts ...... 4 Sample Pages and Sample Tables from: Market Environment ...... 6 Products ...... 7 Markets...... 8 Industry Structure ...... 9 Company Profiles ...... 10 List of Companies Profiled ...... 11 Forecasting Methodology ...... 12 About the Company ...... 13 Advantages of Freedonia Reports ...... 13 About Our Customers ...... 14 About the Author ...... 14 Other Titles From Freedonia ...... 15 Ordering Information...... 16 US Demand Study Highlights • Food container demand in the US is projected to increase 3.3 percent yearly to $14 billion in 2003.

Both primary and secondary rigid packag- • Paperboard containers will remain the largest segment of the ing are included in the study in cases food container industry through 2003, although folding carton where the secondary packaging would demand will be constrained by ongoing source reduction efforts typically be used beyond the point of sale. and growing competition from flexible packaging in traditional Excluded are containers used to package strongholds such as breakfast cereals. beverage products and containers designed for use primarily in food service applica- • Plastic packaging demand will exhibit the best growth, expand- tions. Also excluded are food trays and ing 5.5 percent per annum through 2003 and overtaking metal baskets, pails, home canning jars and as the second largest food container material. separately sold ends and closures. • Best food container market opportunities are anticipated for sauces and condiments, and (to a lesser extent) frozen and baked items.

• Niche growth areas include containers used to package low-calorie and low-fat foods, ethnic and other highly flavored products.

Industry Structure and Participants

• About 500 companies serve the $12 billion food container market in the US.

• Silgan, Crown Cork & Seal, Graphic Packaging (ACX Technologies), Ball, Owens-Illinois and Ball-Foster (Saint- Gobain) together supplied 37 percent of US food container demand in 1998.

• Import competition in the food container market will remain limited due to the high costs associated with transporting empty containers.

• Merger and acquisition activity is expected to continue, although the shakeout has been largely completed in the glass and metal food container segments.

Food Containers #1198 Freedonia Industry Study 2 Study Highlights Food Container Demand, 1998

Paperboard 38.9%

Metal Glass 27.9% 8.9%

Plastic 24.3%

Food Container Demand (million dollars) % Annual Growth Item 1989 1998 2003 2008 98/89 03/98

Food Shipments (bil $) 305.5 392.2 475.4 573.4 2.8 3.9 $ containers/000$ shpts 29.4 30.4 29.4 28.6 -- -- SUMMARY TABLE Food Container Demand 8984 11910 14000 16400 3.2 3.3 Paperboard 3489 4630 5420 6297 3.2 3.2 Metal 2780 3325 3760 4200 2.0 2.5 Plastic 1650 2890 3780 4900 6.4 5.5 Glass 1065 1065 1040 1003 -- -0.5

cents/unit 9.6 10.8 11.7 12.6 1.3 1.6 Food Container Demand (bil units) 93.4 110.2 119.6 130.0 1.9 1.7

Food Containers #1198 Order form on last page 3 Gabletop Cartons ...... 50 Table - Gabletop Carton Demand ...... 51 Set-Up Containers ...... 51 List of Contents, Table - Set-Up Carton Demand ...... 52 Aseptic Boxes ...... 53 Table - Aseptic Carton Demand ...... 55 Tables and Charts Other Paperboard Containers ...... 55 Table - Other Paperboard Food Container Demand by Type ...... 56 Chart - Other Paperboard Food Container Demand by Type, 1998 56 I. EXECUTIVE SUMMARY ...... Composite Cans ...... 57 Summary Table ...... 3 Table - Composite Can Food Container Demand ...... 58 Nonfolding Sanitary Containers 59 II. MARKET ENVIRONMENT ...... Table - Nonfolding Sanitary Food Container Demand ...... 60 General ...... 4 Egg Cartons ...... 60 Macroeconomic Overview ...... 5 Table - Egg Carton Demand ...... 61 Table - Macroeconomic Indicators ...... 7 Markets ...... 61 Consumer Income & Spending ...... 7 Table - Paperboard Food Container Demand by Market ...... 62 Table - Consumer Expenditures ...... 9 Chart - Paperboard Food Container Demographic & Household Trends ...... 9 Demand by Market, 1998 ...... 62 Table - Demographic & Household Trends ...... 10 Age Distribution Patterns ...... 11 V. METAL FOOD CONTAINERS Other Demographic Trends ...... 12 General ...... 63 Food Industry Outlook ...... 13 Table - Metal Food Container Demand by Type ...... 65 Table - Food Shipments ...... 14 Chart - Metal Food Container Demand by Type, 1998 ...... 66 Chart - Food Shipments, 1998 ...... 15 Container Types, Materials & Producers ...... 66 Consumer Preferences ...... 15 Steel & Bi-Metal Cans ...... 67 Distribution Trends ...... 17 Aluminum Cans ...... 68 Packaging Trends ...... 18 Aerosol Cans ...... 70 Table - Packaging Shipments ...... 20 Captive versus Merchant Production ...... 70 Competitive Packaging Materials ...... 20 Table - Metal Food Container Competitive Flexible Packaging ...... 20 Demand by Source of Production ...... 71 Competitive Variables ...... 21 Merchant Production ...... 71 Microwave Oven Diffusion Trends ...... 25 Captive Production ...... 73 Table - Microwave Oven Diffusion Trends ...... 26 Markets ...... 73 Pricing Trends ...... 26 Table - Metal Food Container Demand by Market ...... 74 Table - Food Container Pricing Trends ...... 27 Chart - Metal Food Container Market Volatility ...... 30 Demand by Market, 1998 ...... 75 Table - Food Container Market Cyclicality ...... 31 Chart - Food Container Market Cyclicality ...... 31 VI. PLASTIC FOOD CONTAINERS Environmental & Regulatory Issues ...... 32 General ...... 76 Recycling Activity ...... 33 Table - Plastic Food Container Demand by Type ...... 77 Regulatory Considerations ...... 34 Chart - Plastic Food Container Demand by Type, 1998 ...... 78 International Activity ...... 36 Plastic Tubs & Cups ...... 78 Table - Plastic Tub & Cup Demand 80 III. FOOD CONTAINER MATERIALS ...... Chart - Plastic Tub & Cup Demand, 1998 ...... 81 Table - Food Container Demand by Material ...... 41 Plastic Bottles ...... 81 Chart - Food Container Demand by Material, 1998 ...... 41 Table - Plastic Food Bottle Demand ...... 83 Chart - Plastic Food Bottle Demand by Resin, 1998 84 IV. PAPERBOARD FOOD CONTAINERS ...... Other Plastic Containers ...... 84 General ...... 42 Table - Other Plastic Food Container Demand by Type ...... 85 Table - Paperboard Food Container Demand by Type ...... 43 Chart - Other Plastic Food Container Container Types & Producers ...... 44 Demand by Type, 1998 ...... 86 Paperboard Cartons ...... 46 Egg Cartons ...... 86 Table - Paperboard Food Carton Demand by Type ...... 47 Jars ...... 87 Folding Cartons ...... 47 Other ...... 88 Table - Folding Carton Demand ...... 49 Markets ...... 89 Other Cartons ...... 49 Table - Plastic Food Container Demand by Market ...... 89 Table - Other Food Carton Demand by Type ...... 50 Chart - Plastic Food Container Demand by Market, 1998 ...... 90

Food Containers #1198 Freedonia Industry Study 4 Resins ...... 90 Meats & Related Products ...... 128 Table - Plastic Food Container Demand by Resin ...... 91 Meats & Related Products Shipment Outlook ...... 129 Chart - Plastic Food Container Demand by Resin, 1998 ...... 92 Table - Meat & Related Products Shipments ...... 131 Polyethylene Terephthalate ...... 92 Container Trends ...... 131 High Density Polyethylene ...... 93 Table - Meat & Related Product Container Polystyrene ...... 93 Demand by Market ...... 132 Other Resins ...... 94 Meats, Poultry & Seafood ...... 132 Table - Meat Container Demand by Material ...... 134 VII. GLASS FOOD CONTAINERS Eggs ...... 134 General ...... 96 Table - Egg Carton Demand by Material ...... 135 Table - Glass Food Container Demand by Type ...... 97 Frozen & Prepared Foods ...... 135 Competitive Factors ...... 98 Frozen & Prepared Foods Shipment Outlook ...... 136 Glass Jars ...... 99 Table - Frozen Food Shipments ...... 137 Table - Glass Jar Demand by Market ...... 101 Container Trends ...... 137 Glass Bottles ...... 101 Table - Frozen & Prepared Food Container Demand ...... 138 Table - Glass Bottle Demand by Market ...... 102 Snack Foods ...... 138 Snack Food Shipment Outlook ...... 138 VIII. FOOD CONTAINER MARKETS Table - Snack Food Shipments ...... 139 General ...... 103 Container Trends ...... 139 Table - Food Container Demand by Market ...... 104 Table - Snack Food Container Demand by Material ...... 140 Chart - Food Container Demand by Market, 1998 ...... 104 Other Foods ...... 141 Sauces & Condiments ...... 105 Other Foods Shipment Outlook ...... 141 Sauces & Condiments Shipment Outlook ...... 105 Table - Other Food Shipments ...... 143 Table - Sauce & Condiment Shipments ...... 106 Container Trends ...... 143 Container Trends ...... 106 Table - Other Food Container Demand by Market ...... 144 Table - Sauce & Condiment Container Fats & Oils ...... 144 Demand by Material ...... 108 Table - Fats & Oils Container Demand by Material ...... 145 Chart - Sauce & Condiment Container Coffee & Tea ...... 145 Demand by Material, 1998 ...... 108 Table - Coffee & Tea Container Grain Mill Products ...... 109 Demand by Material ...... 146 Grain Mill Shipment Outlook ...... 109 Baby Foods ...... 146 Table - Grain Mill Product Shipments ...... 110 Table - Baby Food Container Demand by Material ..... 147 Container Trends ...... 110 Miscellaneous Foods ...... 147 Table - Grain Mill Products Container Table - Miscellaneous Food Container Demand by Market ...... 111 Demand by Material ...... 149 Pet Foods ...... 111 Table - Pet Food Container Demand by Material ...... 113 IX. INDUSTRY STRUCTURE Other Grain Mill Products ...... 114 General ...... 150 Table - Other Grain Mill Product Container Market Share ...... 151 Demand by Material ...... 115 Chart - Food Container Market Share, 1998 ...... 152 Dairy Products ...... 116 Industry Leaders ...... 152 Dairy Shipment Outlook ...... 116 Paperboard Containers ...... 155 Table - Dairy Product Shipments ...... 118 Chart - Paperboard Food Container Container Trends ...... 118 Market Share, 1998 ...... 156 Table - Dairy Product Container Demand by Material ...... 120 Metal Containers ...... 157 Fruits & Vegetables ...... 120 Chart - Metal Food Container Market Share, 1998 ..... 157 Fruit & Vegetable Shipment Outlook ...... 121 Plastic Containers ...... 158 Table - Processed Fruit & Vegetable Shipments ...... 121 Chart - Plastic Food Container Market Share, 1998 ...... 159 Container Trends ...... 122 Glass Containers ...... 159 Table - Fruit & Vegetable Container Chart - Glass Food Container Market Share, 1998 ...... 160 Demand by Market ...... 123 Mergers & Acquisitions ...... 160 Vegetables ...... 123 Table - Selected Acquisitions & Divestitures ...... 163 Table - Vegetable Container Demand by Material ...... 124 Product Manufacturing & Development ...... 166 Fruits ...... 124 Marketing & Distribution ...... 168 Table - Fruit Container Demand by Material ...... 125 Competitive Strategies ...... 170 Baked Goods ...... 126 Table - Selected US Food Container Manufacturers’ Baked Goods Shipment Outlook ...... 126 Sales by Company, 1998 ...... 172 Table - Baked Goods Shipments ...... 127 Company Profiles ...... 172-238 Container Trends ...... 127 Table - Baked Goods Container Demand by Material ...... 128

Food Containers #1198 Order form on last page 5 Market Environment

The Market Environment Section discusses factors influencing food containers demand, including demo-

graphic and food industry trends. MARKET ENVIRONMENT

This information provides you with an Food Industry Outlook understanding and an analysis of the climate in which the food containers Food industry trends directly influence food container opportunities since specific container materials and styles are better suited for certain food products. A wide industry operates. array of macroeconomic andSAMPLE industry-specific PAGE factors influence the health of the food industry and the relative prospects of various food products. These factors include consumer income and spending patterns; population growth, ethnic diversity and age composition; climate and weather patterns; product pricing; advertising initiatives; government programs (e.g., crop subsidies, school lunches, food stamps); new product development efforts; foreign trade; and lifestyle trends. Improvements in food processing and/or preparation technologies can also lead to the use of different containers or the development of new packaging systems.

The food industry encompasses many types of products, including baked goods, grain mill products, produce, fats and oils, snacks and confections, frozen and prepared meals, sauces and condiments, meats, dairy products and beverages. The US market is generally mature, with the average amount of food consumed per person staying relatively unchanged from year to year (although net caloric intake per capita has risen over the past several decades).

Processed food shipments in the US are forecast to rise nearly four percent per annum through 2003 to $475 billion. While potential gains will be restrained to some extent by decelerating population growth and market maturity, heightened consumer demand for convenient (prepared, single-serving), healthy and other upscale items will favorably impact the food product mix. In particular, the increased popularity of so-called “home meal replacements” (i.e., high quality refrigerated meals requiring minimal preparation) offered by supermarkets, restaurants such as Boston Market (Boston Chicken) and other outlets will propel value gains for processed foods.

Food Containers #1198 Freedonia Industry Study 6 Containers

FOOD CONTAINERS

The Container Sections provide demand Aluminum Cans for historical years and forecast growth to 2003 and 2008. Aluminum food can demand is predicted to expand 4.5 percent annually to 4.5 billion units in 2003. Growth will be attributable to aluminum can use in some of the fastest growing segments of the food industry, SAMPLEsuch as pet foods PAGE and nutri- Containers discussed include: tional supplements. However, aluminum food cans require thicker walls than steel cans, and hence are more metal intensive, a fact which has made it difficult for aluminum to diffuse throughout the food can market. Consequently, aluminum Paperboard Food Containers cans essentially cannot compete in many of the major canned food segments such Metal Food Containers as fruits and vegetables, soups and sauces, dried coffee and baby foods. Plastic Food Containers Aluminum cans are typically smaller and lighter weight than steel, and employ a Glass Food Containers pull-top metal lid. Although aluminum cans will continue to account for less than 15 percent of all metal food containers, they do offer numerous advantages over their steel counterparts. Aluminum is strong, lightweight and highly ductile; This information helps you: maintains flavor and temperature well; has excellent resistance to corrosion; and is economically recyclable. There is also less waste in aluminum can production • Analyze your company's than in steel can production. As with steel, aluminum cans have also benefitted from continual downgauging, as thinner can walls and smaller bases and necks growth potential in translate into raw material and hence cost savings. However, practical limits have the industry. been reached in aluminum wall thickness, without sacrificing structural integrity, and further significant lightweighting will only be possible with the development of new alloys. • Outline your strategic plans for five and ten Demand for single-serving pet food will be driven by expanding cat and dog ownership, expanding consumer affluence and aggressive marketing of new, years out. upscale pet products through pet superstores. Nevertheless, metal cans will Plastic Foodcontinue Bottle to face Demand competition from dry varieties of pet food packaged in paper- • Establish sales goals. (million units) board and the recent introduction of flexible plastic pouches for moist pet foods. Item 1989 1993 1998 2003 2008

Plastic Food Container Demand 14580 16675 21730 25885 30620 % bottles 18.5 23.7 29.7 32.9 36.0

Plastic Food Bottle Demand 2700 3950SAMPLE 6450 TABLE 8515 11030

ounces/unit 3.0 2.8 2.8 2.8 2.8

Resin Use in Bottles (mil lbs) 505 690 1130 1490 1930 PET 120 260 637 932 1305 HDPE 317 333 380 425 470 PVC 68 97 113 133 155

Food Containers #1198 Order form on last page 7 Markets

The Markets Section analyzes trends and considers the threats and opportunities in each of the major markets for food

containers. MARKETS

The information presented will Baked Goods - help you: Container Trends

• Focus your sales and marketing Demand for food containers used in the packaging of baked goods is projected to efforts on high growth areas. grow 3.4 percentSAMPLE per year to PAGE $1 billion in 2003. Further growth will be threatened by advances in food service settings rather than retail markets (food service packaging is not covered in the study). Many grocery stores have jumped on the • Propose new areas for development. bandwagon and established their own in-store delis, bakeries, salad bars and related food counters. In the case of baked goods like cakes and muffins, such products often compete directly with packaged retail bakery products.

The baked goods container industry will remain dominated by paperboard packaging, where demand is projected to grow 3.4 percent per annum to $965 million in 2003. Paperboard containers, such as folding cartons, are widely used as primary and/or secondary packaging for cookies, crackers, cakes, pies, doughnuts and other bakery products. Folding paperboard containers used in this Dairy Productmarket Container frequently incorporateDemand a plasticby Material film window to allow consumers to view (million dollars) the contents. Gabletop cartons and composite cans also find use with items like crackers and cookies. There is also a small market for decorative metal tins used to package seasonal and holiday baked items like Danish butter cookies. In both Item 1989 1993 1998 2003 2008 cases, paper and metal containers face little competition from other rigid packag- Dairy Product Shipmentsing materials (bil within $)* the retail baked25.7 goods 30.6 packaging 43.6 market, although 54.0 cartons 66.7 $ containers/000$compete shpts with flexible packaging like 58 paper and 51 plastic 41bags in the 38 cookie, cracker 34 and snack cake segments. SAMPLE TABLE Dairy Products Container Demand 1486 1571 1802 2025 2273 Paperboard 579 650 782 940 1110 Plastic 677 676 740 770 813 Metal 230 245 280 315 350

% dairy products 16.5 15.8 15.1 14.5 13.9 Food Container Demand 8984 9939 11910 14000 16400 © Copyright by The Freedonia Group, Inc. * excluding milk & cream

Food Containers #1198 Freedonia Industry Study 8 Industry Structure Sample page from Freedonia Industry Study

Gain#1117 a better Fractional understanding Horsepower of your Motors competition and analyze your company's position in the industry with information about:

• market share INDUSTRY STRUCTURE

• competitive strategies Marketing & Distribution

Price, performance (i.e., functional properties) and quality are the primary • manufacturing & development marketing factors in the highly competitive food container industry. Price competition in the industry is very strong and, due to the commodity nature of • marketing & distribution many containers, can be the determining factor as to which material and supplier is used for a specific application. Buyers of containers are extremely price-sensitive • mergers & acquisitions because the cost of a container is generallySAMPLE a significant portionPAGE of the buyer’s product cost. Moreover, the container manufacturer typically has very little in the way of intrinsic bargaining power, since buyers often purchase large quantities relative to the container manufacturer’s total sales, have sufficient qualified alternative sources, and face only moderate shopping, transaction or negotiating costs. Timely delivery, aided by the location of production facilities near food processing customers, is also important in maintaining or increasing market share. This tends to favor larger producers, who can afford to maintain multiple redundant production facilities throughout the nation. Customer services is another significant marketing element in the food container industry. Since food applications typically require precise packaging characteristics, container producers often offer custom-designed containers and will work closely with food processors in the design, development and production of new containers.

Other food container marketing strategies include “green marketing” and advertising. In green marketing, the environmental friendliness of the container is stressed in order to appeal to consumers and businesses that are concerned about the environmental impact of packaging. As for advertising, many container companies place advertisements in the trade press, while larger producers may also pursue extensive promotional campaigns.

The primary channels of distribution for food containers are through direct sales efforts, independent distributors and brokers. Large container producers tend to

Food Containers #1198 Order form on last page 9 Company Profiles

The profiles section analyzes 50 companies active in the U.S. food containers market. These profiles represent a sampling or cross-section of

the types of companies involved in the COMPANY PROFILES industry. Rock-Tenn Company 504 Thrasher Street Divisions, subsidiaries, joint Norcross, GA 30071 ventures, etc., are discussed under 770-448-2193 appropriate parent companies.

Rock-Tenn is a leading manufacturer of recycled clay coated and uncoated Sources for profiles included: paperboard and a leading converter of recycled and virgin paperboard. The Company operates in two industry segments: Paperboard and Converted Products. Rock-Tenn has ten paperboard mills, 55 converting facilities, 14 paper recovery • Information provided by facilities and one distribution facility in the US andSAMPLE Canada. Sales PAGE in FY 1999 for key staff members in the Rock-Tenn were $1.3 billion, virtually unchanged from FY 1998 sales. The Company employed 8,860 in FY 1998. respective companies

Rock-Tenn’s Converted Products segment had sales of $1.1 billion in FY 1999, • Annual reports including intersegment sales. The segment consists of four divisions: Corrugated Packaging and Display; Folding Carton; Plastic Packaging; and Fiber Partitions. The Company produces rigid food packaging through its Folding Carton and • 10-K reports Plastic Packaging divisions.

Through its Folding Carton division, the Company is a leading supplier of folding • Security analysts reports cartons in North America. Folding cartons accounted for 45 percent of Rock- Tenn’s FY 1998 sales, or $585 million. The division produces folding cartons constructed from recycled and virgin paperboard to package products such as • Corporate product literature frozen, dry and perishable food items; paper goods; hardware products; and textile, automotive and apparel products. Food products packaged in Rock-Tenn’s folding cartons include CHEERIOS (General Mills), DUNKIN’ DONUTS (Dunkin’ Donuts) and DEL MONTE’S sweet peas (Del Monte).

In 1998, folding cartons were produced at plants located in Eutaw, Alabama;

Food Containers #1198 Freedonia Industry Study 10 Companies ACX Technologies Incorporated Pechiney Graphic Packaging Corporation American National Can Airlite Plastics Corporation Plastipak Packaging Corporation Profiled Alltrista Corporation Rexam plc Alusuisse Lonza Group Limited Reynolds Metals Company Lawson Mardon Thermoplate Rock-Tenn Company Arkansas Glass Container Corporation Saint-Gobain Ball Corporation Ball-Foster Glass Container Company Berry Plastics Corporation Seneca Foods Corporation BWAY Incorporated Aunt Nellie’s Farm Kitchens Brockway Standard Incorporated SIG Group Caraustar Industries Incorporated Combibloc Incorporated Federal Packaging Corporation Silgan Holdings Incorporated Champion International Corporation Clearpass Containers Incorporated CLARCOR Incorporated Winn Packaging Company Clark (JL) Incorporated Smurfit-Stone Container Corporation ConAgra Incorporated Sonoco Products Company United Can Company Spartech Corporation Consolidated Container Company LLC GenPak Continental Plastic Containers Incorporated Suiza Foods Corporation Plastic Containers Incorporated Sweetheart Cup Company Incorporated Reid Plastics Incorporated Tekni-Plex Incorporated Consumers Packaging Incorporated Dolco Packaging Anchor Glass Container Corporation PureTech Corporation Glenshaw Glass Company Tenneco Incorporated Pet-Pak Containers Tetra Laval International SA Crown Cork & Seal Company Incorporated US Can Corporation CONSTAR International Incorporated VIAG AG Field Container Company LP Schmalbach-Lubeca Plastic Containers USA Inc. Fort James Corporation Westvaco Corporation Graham Packaging Company Gulf States Paper Corporation Fold-Pak Corporation Hayes Manufacturing Group Incorporated Huhtamaki Van Leer Oyj Royal Packaging Industries Van LeerNV Sealright Company Incorporated Tetra Cup International Paper Company Union Camp Corporation Landis Plastics Incorporated Letica Corporation LINPAC Group Limited Ropak Corporation McCormick & Company Incorporated Setco Incorporated Owens-Illinois Incorporated Packaging Corporation of America Packaging Resources Incorporated Pactiv Corporation

Food Containers #1198 Order form on last page 11 Forecasting Methodology

Freedonia does not just collect and reprint data; Freedonia develops data. Our analysts thoroughly investigate an industry by extensively interviewing key industry participants and analyzing information from sources such as associations, government and trade literature. Once this The Freedonia research is complete, Freedonia establishes Economics Group Freedonia one set of forecasts. All writing, editing In-house Research Consistent framework and forecasting is done in-house to assure of economic indicators on . . . • Quantitative forecasting quality and consistency. In cases where • Food Shipments • Industry structure & market • Population share analyses data does not exist, Freedonia develops the • Gross Domestic Product (GDP) • Product analyses & forecasts data based on input/output ratios, bills of . . . and many others materials and flow charts. The following chart summarizes Freedonia's methodology:

Methodology for Food Containers

Proprietary Extensive Interviews Electronic Database • Key participants • Trade publications • Industry experts • Government reports • End-users • Corporate literature • Online databases . . . and many others

Food Containers #1198 Freedonia Industry Study 12 The Freedonia Group, Inc. is a leading international industry study/ About database company. The Freedonia Group Since 1985, Freedonia has published over 1,500 titles covering areas such as chemicals, coatings and adhesives, building materials, plastics, industrial components and equipment, health care, packaging, household goods, security, and many other industries.

Freedonia has produced a wide variety of titles, including:

• Polyethylene Terephthalate Resins • Corrugated & Paperboard Boxes • Paper versus Plastics in Packaging • Plastic Containers

Because Freedonia is a reliable information source, our forecasts are cited in numerous publications such as The Wall Street Journal, The Financial Times, Packaging International and USA Today.

Advantages In-house operations of Freedonia Reports Because all of our staff work at the same location, interaction between analysts and departments provides a strong system of checks and balances.

Consistency Our Economics Group develops indicators that are used by all analysts. Therefore, every Freedonia study is based on a consistent set of economic assumptions (GDP, population, food shipments, etc.)

Reliable forecasts Because all of our forecasts consider the environment in which a product or industry is operating, as well as threats and opportunities to the market, Freedonia forecasts are reliable indicators of future performance.

One-on-one interviews All studies are produced by conducting interviews with key industry participants and end-users.

Proprietary electronic database Freedonia’s analysts can tap into an extensive in-house electronic database containing corporate literature (including private company information), trade publications, government reports and many other sources of information.

Food Containers #1198 Order form on last page 13 About Our Customers Freedonia's clients include major US and international companies in the manufacturing, services, consulting and financial sectors.

Typical purchasers of Freedonia studies :

• Key Executives • Corporate Planners • Market Researchers • Financial Analysts • Information Centers • New Product Developers • Merger & Acquisition Specialists

Since 1985 we have provided research to customers ranging in size from global conglomerates to one person consulting firms. More than 90% of the industrial companies in the Fortune 500 use Freedonia research to help with their strategic planning.

Some of Freedonia's customers in the food containers market include: Plastipak, Tenneco, Rexam and International Paper.

About the Author William P. Weizer, Vice President, Plastics and Chemicals Division

With over 15 years of experience as a research analyst, William Weizer has recently used his expertise to analyze the US food containers industry. Mr. Weizer has also completed several related studies, including Converted Flexible Packaging, PET Resins, Plastic Containers and Plastic Film.

Before joining The Freedonia Group, Inc., Mr. Weizer held senior positions in industry research at Predicasts, Inc. He was also a Business Analyst for Dun & Bradstreet, responsible for the compilation and analysis of corporate data. Mr. Weizer graduated from Cleveland State University, receiving a B.S., with a dual major in economics and political science, and a M.A. in economics.

Mr. Weizer is also an active member of several associations including: Institute of Packaging Professionals, American Chemical Society, Chemical Management and Resources Association and Society of the Plastics Industry.

Food Containers #1198 Freedonia Industry Study 14 Boxes & Paperboard Packaging - Corrugated & Paperboard Boxes Private Companies Report Underlying slow gains in US box demand will be an Hundreds of private companies are active in the upswing in food shipments and strength in other Other Titles US boxes and paperboard packaging industry, in- markets (e.g., drugs, fast food, consumer electron- cluding makers of boxes, cartons, fiber cans, tubes ics, software). Competitive packaging and reduc- From Freedonia and drums. Two private companies have box and tions in secondary packaging are spurring box mak- paperboard packaging sales of at least $400 million. ers to develop new designs, improve graphics, tout This report profiles over 150 privately-held firms, paper’s environmental profile and target new mar- including Americraft, Four M and Green Bay Pack- kets. This study analyzes the $33 billion US paper aging. The report also forecasts box and paper- box industry to 2002 and 2007 by product, mate- board packaging demand by type and market, pre- rial and market. It also presents market share and For more information about sents market share data and lists companies by company profiles. these or other Freedonia titles, product and location. #1072...... 1/99...... $3,300 #1208...... 1/00...... $3,000 please contact us at: Plastic Containers The Freedonia Group, Inc. Polyethylene Terephthalate Resins US plastic container shipments will grow over 4% Phone: (440) 684-9600 Polyethylene terephthalate (PET) resin demand in annually as improved barrier properties allow plas- the US will grow over 6% annually, driven by op- tics to cut deeper into competitive material mar- (800) 927-5900 portunities in single-serve carbonated soft drink kets. Resin use will outpace unit shipments as and bottled water bottles. Milk and beer bottles larger containers like pails and bottles supplant Fax: (440) 646-0484 are new, potentially large PET applications. PET food trays, although the trend will be toward advantages in packaging include light weight, clar- lighter weight containers. The study analyzes the ity, design flexibility and a sound environmental US plastic container industry to 2002 and 2007 by profile. This study examines the $2.7 billion US type and end-use, including market share and com- PET resin industry to 2003 and 2008 by process pany profiles. and market. It also gives market share data and #1018...... 6/98...... $3,400 profiles key companies. #1191...... 11/99...... $3,500 Food & Beverage Containers - Private Companies Report Beverage Containers Several private firms hold significant shares of the Growth in US beverage container demand will be US food and beverage container industry. Four supported by new beverage product introductions control a combined 6% of the food segment, while and the ongoing development of underutilized dis- two private firms hold a combined 3% of the more tribution channels. Plastic containers will log the concentrated beverage segment. This report pro- fastest gains as they continue to supplant metal, files over 170 privately-held food and beverage con- glass and paperboard containers. This study ana- tainer firms including Field Container, Graham lyzes the 195 billion unit US beverage container Packaging, Gulf States Paper, Landis Packaging, industry to 2003 and 2008 by market and material. Plastipak Packaging, Reid Plastics, SF Holdings It also presents market share data and profiles key and Tetra Pak. It also forecasts industry demand companies. and details market share. #1136...... 7/99...... $3,500 #1005...... 7/98...... $3,000

Paper Versus Plastics in Packaging Metal Cans Plastics will continue to supplant paper in US mar- Mature markets and competition from glass and kets where the two materials compete, but the rate plastics will slow annual metal can growth signifi- of penetration will slow. Paper and board will re- cantly. Advances in can technologies and designs main dominate, even outpacing plastics in some will offer pockets of opportunity. Cans’ consumer packaging. Plastics will make inroads in recyclability will also remain an important com- beverage containers, egg cartons, food trays and petitive advantage, with the aggregate recovery rate most other packaging. This study examines the 75 surpassing 65% by 2002. This study analyzes the billion pound US competitive paper and plastic $11 billion metal can industry in the US to 2002 packaging industry to 2002 and 2007 by type and and 2007 by material, type and end-use market. application. It also details market share and pro- Recycling data is also provided, as are market files key companies. shares and key company profiles. #1073...... 12/98...... $3,500 #998...... 5/98...... $3,300

Food Containers #1198 Order form on last page

15 How to Order

Ordering Information For more information about our products, Fill out the coupon below and mail it to The Freedonia Group, or send your order by fax (440) 646-0484, or E-mail to please call the Freedonia Customer Service [email protected] Department at (440) 684-9600 or (800) 927-5900 or fax (440) 646-0484. Handling and Shipping is FREE There is NO charge for handling and shipping. In the US we ship via UPS. Outside the US, we provide free airmail service. If you would like express delivery, we provide this to you at cost. Discounts If your order is accompanied by a check, you may take a 5% cash discount. If you order three (3) separate industry studies and/or private company reports at the same time, you are entitled to a 15% discount. Use Credit Card You may charge your order to either Visa, MasterCard or American Express. Please include your credit card account number, expiration date and your signature. Orders Outside of the US Checks must be paid in US funds and drawn against a US bank. Wire transfers should be sent to: Fifth Third Bank, Cincinnati, Ohio; The Freedonia Group, Inc.; SWIFT #FTBCUS3C; ABA #042000314; Account #830-51814 (please include study number and/or invoice Intranet Licenses number with all wire transfers). Additional Copies Intranet licenses are available for one or more Additional copies are available to original purchasers at $390 per title. users. For information about obtaining a Freedonia intranet license, contact our cus- Online Access tomer service department. The complete text and tables from our studies and reports can be found on our Web site www.freedoniagroup.com and through the following commercial vendors: The Dialog Corporation (DataStar, Dialog or Profound); Dow Jones Interactive; Financial Times (FT Profile); Lexis/ Nexis; Reuters (Reuters Business Briefing); and Thomson Financial Securities Data (Investext/MarkIntel).

THE FREEDONIA GROUP, INC. TITLE PRICE 767 Beta Drive Cleveland, OH 44143-2326 USA Phone: (440) 684-9600 • (800) 927-5900 #1198 Food Containers $3,600 Fax: (440) 646-0484

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Division: Please check method of payment: Total: $ Street: Enclosed is my check (5% discount) drawn on a US bank and payable to The Freedonia (no PO Box please) Group, Inc., in US funds. (Ohio residents add 7% sales tax). City/State/Zip: Bill my company MasterCard Visa American Express

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Email: Credit Card # Expiration Date SHIPPING and HANDLING charges are FREE via UPS (USA only) or airmail. Express delivery available at cost. Signature: K-SM.1198 Please inquire.