David C. Beckmann

The Challenge of Reconciling Innovation Needs with Business

Models

IssuesIndustry Response

Some Solutions

David C. BeckmannDavid C. Beckmann

www.linkedin.com/dcbeckmannwww.linkedin.com/dcbeckmann

zdcb@bex.netzdcb@bex.net

+1.419.536.5016+1.419.536.5016

Senior Managing Executive

Some Key IssuesSome Key Issues

• US consumer resetUS consumer reset

• ““Green”, “Sustainability”Green”, “Sustainability”

• CostCost

• InnovationInnovation

• Supplier profitabilitySupplier profitability

The Chinese ViewThe Chinese View  • China projected for 20+ % year on China projected for 20+ % year on

year growth; for at least for next 3-5 year growth; for at least for next 3-5 yearsyears

– PET is stillPET is still  leading package globallyleading package globally– Sustainability/carbon foot print criticalSustainability/carbon foot print critical

Close loop recyclabilityClose loop recyclability– Light-weighting is a continuous requirementLight-weighting is a continuous requirement– Premium appearance not significant; Premium appearance not significant; costcost and and

functionalityfunctionality key driver. key driver.– SpeedSpeed to market to market

Packaging As Part Of An Integrated Packaging As Part Of An Integrated SystemSystem

Packaging

ConsumerNeeds

SupplyChain

Product

Manufacturing & Disposal

Protection & Preservation

Transport & Distribution

Security, Portion Control, Easy Open, Product Information, Etc.

+

+

+

We Must Eliminate all Waste (material, energy, water) in the total system!!

The Industry ResponseThe Industry Response

• Tremendous amount of light weighting Tremendous amount of light weighting and package redesignand package redesign

• Suppliers providing great solutions Suppliers providing great solutions

The Industry SituationThe Industry Situation• Product life cycle acceleratingProduct life cycle accelerating

• Margin pressures Margin pressures

Resin Costs Saved In Caps & Finishes

•Light weighted caps and finish system designs:– New designs: Finish / Closure

weights down 33% – 44%

38 to 33 Juice Edible oilDispensingWaterLDL Detergent

VISION

• Packaging is no longer seen as waste or just product transportation: it is a valuable resource for recycling and activating the final consumer product itself.

• Innovation is consumer focused, FAST, continuous profitable and collaborative process to create growth for all members of the supply chain.

A New Vision for Growth

New Concepts

•Active barriers, lower cost valves, barrier thermo formed containers

•Active packaging that catalyzes functional products

Carbonated products

DispensingValve

Barrier Package ????

Whats Next• Dynamic Active Packaging…Beyond Protection

– Retain and release carbonation for life extension– Catalyst on using– Design that intrigues and is integral to product delivery

process and enjoyment

• Manufacturing Processes– Injection competitive with compression speeds– Thermo formed multilayer packages with active and

passive layers– New materials with improved flow rate and other

characteristics

• Speed to Market– Breakthrough computer package modeling– Quick and longer life tooling for volume prototyping– Manufacturing molds designed for a predetermined life

VISION

• Packaging -No longer seen as waste or product transportation; it is a valuable resource for recycling and activating the final consumer product itself.

• Innovation -Consumer focused, continuous profitable and collaborative process to create growth for all members of the supply chain.

Can A Vision Become A Reality?

Are We Willing To Pay For The Effort?

Some SolutionsSome Solutions

• A new collaborative relationship for system A new collaborative relationship for system innovation:innovation:– Customers, Suppliers, Consultants, SpecialistsCustomers, Suppliers, Consultants, Specialists– Clarity on IP and how all earn $ for a timeClarity on IP and how all earn $ for a time

An understanding that all parts of the creation process must An understanding that all parts of the creation process must get a ROS to drive results a unified attack on the entire get a ROS to drive results a unified attack on the entire supply and distribution chains’ non value added costssupply and distribution chains’ non value added costs

• A unified attack on the entire supply and A unified attack on the entire supply and distribution chains’ non value added costsdistribution chains’ non value added costs

• Self manufactureSelf manufacture with customer managed internal with customer managed internal and external development organizationsand external development organizations

Many Thanks

• Inputs:– Bericap– Universal Closures– Rexam– Anonymous Global Food and Beverage

Companies

•ALL OF YOU