FMN | November 26th, 2018

An N.V. Publication FLEX

November 26, 2018

Vol. 20 No. 24

Market News

®

Serving The Flexographic Printing Industry In Print and Online at www.nvpublications.com

Millennials Drive Packaging Change

Kodak Sells Flexo Business

Eastman Kodak Company has en- tered into a definitive agreement to sell its Flexographic Packaging Divi- sion to Montagu Private Equity LLP, a leading private equity firm. After closing, the business will operate as a new standalone company that will develop, manufacture and sell flexo- graphic products, including the flag- ship KODAK FLEXCEL NX System, to the packaging print segment. New Ownership Under its new ownership, the busi- ness will have the same organization- al structure, management team and growth culture as the current Kodak’s Flexographic Packaging Division. Chris Payne, who has served as Presi- dent of the Flexographic Packaging Division for the last three years, will lead the new company as CEO. Kodak expects to receive total value of up to $390 million, com- prised of the following components: (1) base purchase price of $340 mil- lion, subject to purchase price ad- justments; (2) potential earn-out

MM illennials prefer shopping online more than other age groups, and a new survey finds that what they like about product packaging differs, too. In six years of surveys, functionality has ranked as most valued when tallying answers from the general population for the Pack- aging Matters report byWestRock paper packaging company.

“Packaging needs to do its job,” said the 2018 report, based on a survey of about 2,000 U.S. adults by an independent research firm.A product’s wrapper, box, bottle or other container should stop it from leaking, keep the item safe and be easy to use. However, millennials, more than other generations, favor pack- aging that stands out and makes their lives simpler, with designs that can be found easily when shopping and store well at home. Nickie Parker,WestRock VP of Commercial Excellence, points out that many millennials live in smaller spaces and enjoy new looks and shapes for packages, which some feature in #shelfie photos online showing their storage spaces.

(Cont’d on Page 13)

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(Cont’d on Page 6)

Resource Label Group Acquires Best Label

Resource Label Group, a full-service provider of pressure sensitive label, shrink sleeve and RFID/NFC technology for the packaging industry, has acquired Best Label Company. Best Label represents the fourth acquisition in recent months for Resource Label, a portfolio company of First Atlantic Capital, a New York-based private investment firm, and TPG Growth, the middle market and growth equity investment platform of TPG. Labeling Solutions Located in Cerritos, California, and Union City, Cali- fornia, Best Label provides labeling solutions across a variety of segments including the food, beverage, health and beauty, pharmaceutical, automotive, agri- cultural and chemical industries. Resource Label Group, headquartered in Franklin, Tennessee, is a pressure-sensitive label, shrink sleeve and RFID/NFC manufacturer with diverse product of- ferings for the food, beverage, chemical, household products, personal care, nutraceutical, pharmaceuti- cal, medical device, and technology industries. It oper- ates 18 locations across the United States and Canada.

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Innova Market Insights Identifies Consumer Trends Targeting increasingly adventurous consumers, set on new discoveries and experiences, will be key to developments in the food and beverage industry in 2019, according to a new report from Innova. Innova Market Insights’ top five trends for 2019 are: Discovery: the Adventurous Consumer The food and beverage industry is increasingly focus- ing on satisfying the adventurous consumer. Con- sumers are moving out of their comfort zones to explore bolder flavors and multisensory food experi- ences.There is a focus on heightened sensory delivery, often combined with an element of the unexpected. The Plant Kingdom The plant-based market shows no signs of slowing down. Companies and brands are greening up their portfolios to attract mainstream consumers who want to add more plant-based options into their diets. For many, going plant-based is about achieving a healthy and sustainable balance between meat and vegetables, rather than adopting an all-or-nothing way of eating. Alternatives to All As more consumers pay attention to health & sus- tainability, replacement foods and ingredients are on the rise. Health remains the number one reason to buy food alternatives, with one in two U.S. con- sumers reporting that health is a reason for buying al- ternatives to bread, meat or dairy. The search for alternative proteins has resulted in a rising use of black beans, lentils, peas, rice, nuts & seeds, chickpea, and even insects, as protein ingredients for foods. Green Appeal The industry is increasingly committing to answer- ing customer expectations around sustainability.This is driving corporate goals, as manufacturers commit to sustainable product and packaging development with a range of initiatives.This includes waste reduc- tion through upcycled ingredients and post-con- sumer recycling, as well as improved biodegradability and new technology, such as compostable capsules and vegetable inks. Snacking: the Definitive Occasion Snacking is no longer the optional extra, but the defin- itive occasion. It is a central focus of innovation across all food and beverage categories, with 10 percent aver- age annual growth of global food and beverage launch- es with a snacking claim over the past 5 years.

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AICC Offers Corrugated Packaging Fundamentals AICC, The Independent Packaging Association, is once again offering its Corrugated Packaging Funda- mentals Seminar, April 30-May 1, 2019, at President Container in Middletown, NewYork.The seminar gives attendees the opportunity to understand everything corrugated, from raw material choices to end use. AICC relies on members to host many of the semi- nars offered around the country to enhance the learning experience of attendees. This seminar will include a tour of President Con- tainer, a manufacturer of corrugated shipping con- tainers and point of purchase displays.The company uses sustainable materials and produces more than 2.4 billion square feet of corrugated products annual- ly. President Container specializes in items for the food & beverage, cosmetic, garment, and other com- mercial industries. Seminar topics include: • Containerboard Substrates &Applications • Manufacturing Variations • Sustainability • Package Design • Prepress • Printing & Converting

Instructors Dan Malenke, President, PKGPRO, LLC, and Ralph Young,AICC Corrugated Technical Advisor, bring nearly 50 years of experience to the lectern and hands-on activities offered during the course. Global Sustainable Packaging Market To Hit $101.19 Billion The global sustainable packaging market 2018 is esti- mated to accomplish $101.19 Billion by 2023, with a Compound Annual Growth Rate of 5.23 percent throughout the forecast and registered $137.39 Billion in 2017, according to a report from Research Mentor. Coveris Installs Vetaphone Corona Systems Coveris Americas has installed Vetaphone corona systems at its manufacturing plant in Matthews, North Carolina, as part of a strategic plan to standard- ize production with its sister company in the UK, which operates four Vetaphone units. The company specializes in the development and manufacture of precision coated papers, films and special substrates for the electronics, medical, and optical industries.

Industry Events

Graph Expo 19 Sept. 22-25, 2019 Orange County COnvention Center Orlando, FL

Flexo Foundations Seminar December 5-6, 2018 Sonoco Institute, Clemson University Clemson, South Carolina

Labelexpo Europe Sept. 24-27, 2019 Brussels Expo Brussels, Belgium Print19 Oct. 3-5, 2019 McCormick Place Chicago, IL

All4Pack Nov. 26-29, 2018 Paris, France

TLMI Converter Meeting March 10-13, 2019 Omni Grove Park Inn Asheville, NC

TLMI Annual Meeting October 27-30, 2019 Omni LaCosta Resort & Spa Carlsbad, CA TLMI Converter Meeting March 8-10, 2020 Four Seasons Austin,TX

FTA Annual Meeting May 6-7, 2019 Ernest N. Morial Convention Center New Orleans, LA

printTHINK Summit Sept. 11-13, 2019 Hyatt Regency O’Hare Rosemont, IL

Flexo Market News November 26, 2018 5

Millennials Drive Change ( Cont’d from Page 1)

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“They’re looking for the package to tell them some- thing,” Parker said. Younger adults also go against generational trends when asked about trust in packaging, a key to brand loyalty. Millennials have significantly less trust in packaging in most categories. Brand Trust Overall, people say packaging is a significant driver of trust because it prevents tampering, keeps their families safe and communicates honestly, including identifying potential dangers. For building trust, they rank those features above characteristics related to a company “doing good,” such as using ethical manu- facturing and offering recyclability. But millennials say more often that brands can build trust by “doing good,” especially with products made ethically and responsibly. “As the rising generation of new parents, new busi- ness leaders and new decision-makers, their perspec- tive as consumers is an important consideration for brand marketers,” the report said. Harper Corporation of America recently earned its ISO 9001:2015 recertification through DNV GL affirm- ing its commitment to quality management. Harper Corporation of America earned its initial certification in 1996 and has maintained compliance for more than 20 years. Each recertification is valid for three years. Hamillroad Software Launches Partner Program Hamillroad Software launched the Hamillroad Part- ner Program aimed at establishing mutually beneficial relationships with providers of complementary prod- ucts in the printing and graphic arts industry. Potential partners are providers of products, which support Hamillroad’s Digitally Modulated Screening (DMS) prepress solutions: Auraia DMS for offset/lith- ographic printing, and Bellissima DMS for f lexo- graphic printing. Flexible Plastic Packaging Market To Reach $130 Billion The Global Flexible Plastic Packaging Market is ex- pected to exceed more than $130.05 Billion by 2022 at a CAGR of 5 percent in the given forecast period, according to a report from Market Research Engine. Harper Corp. Earns ISO Recertification

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ICPF To Connect With Students In Teleconference The International Corrugated Packaging Founda- tion will conduct its annual Teleconference on The Business of Corrugated Packaging & Displays and the Career Opportunities on February 21, 2019. As in past years, 400-500 packaging, graphic design, mar- keting & sales, chemical & mechanical engineering, supply chain management, business and other stu- dents and faculty on 15-20 college campuses are ex- pected to participate. This annual event is not a webcast, but a live video conference utilizing professional WKAR TV person- nel and TV broadcast equipment at central Michi- gan’s PBS studios for two-way interactivity. After their presentation, industry panel speakers, Jeff Chalovich, President Corrugated Packaging,West- Rock; Greg Hall, CEO, Smurfit Kappa North Americ, and student moderator Taylor Jensen, Michigan State Packaging ’19 & Landaal Packaging Student Intern, will address live questions from students on each of the participating campuses. Best Of The Best Campuses that are planning to participate include Appalachian State University, Bowling Green State University, California Polytechnic State University, Clemson University, Dunwoody College of Technolo- gy, Indiana State University, Illinois State University, Lewis-Clark State College, Michigan State University, Millersville University, North Carolina A & T Universi- ty, North Carolina State University, Pittsburg State University, Rochester Institute of Technology, Rutgers University, University of Florida, University of Texas- Arlington, University of Wisconsin-Stout,Virginia Tech andWestern Michigan. The Teleconference-s grand finale will include ICPF’s annual Best of the Best, Student Design Pre- sentation Competition. Student teams, that earlier placed in AICC's 2018 design competition, will be competing for cash prizes. Student teams from Ap- palachian State, Cal Poly, and University of Texas - Ar- lington will be tasked to show, tell and sell their winning entries by explaining the objective, the re- search conducted, design and other background. Anti Counterfeit Packaging Market To Surpass $206.57B The Anti-Counterfeit Packaging Market is expected to exceed more than $206.57 billion by 2022 at a CAGR of 14 percent in the given forecast period, ac- cording to a report from Market Watch.

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