Mark+Worth

ELIZABETH JOHNSTON ASHLEY LO JACQUELINE MILLER TAYLOR RUPAREL

FASM 400 - Contemporary Issues in Fashion Merchandising Professor Meeta Roy Winter 2015 Savannah College of Art and Design

TABLE OF CONTENTS EXECUTIVE SUMMARY INTRODUCTION MISSION,VISION,VALUES TARGET MARKET OVERVIEW MERCHANDISE CATEGORIES PRODUCT LINE SHEET MARKET SIZE UNIQUE MARKET CHARACTERISTICS COMPETITION FACTORS DRIVING GROWTH SOURCING OF COMPETITION DISTRIBUTION OF COMPETITION TARGET CUSTOMERS CURRENT OBJECT LIFECYCLE PRODUCT INSPIRATION SOURCING ASSORTMENT PLAN USE AND DISPOSAL PRODUCT LIFECYCLE BRANDING BRANDING COSTS PACKAGING CONCLUSION WORKS CITED

4 5 6 7 8 9 10 11 12 15 16 17 18 21 22 23 24 25 27 28 31 32 33 34

EXECUTIVE SUMMARY This initiative exists to fill the void in the market within the category of luxury objects for the male consumer. The emphasis on sustainable practices in the retail environment has grown through recent years due to its increasing importance of modern day consumers. This company stems from the idea that our initiatives can positively impact the retail industry and its current practices. By providing highend, quality objects with a modern, contemporary aesthetic, while reducing the environmental impact in our products’ entire lifecycle, we will harmoniously unite the luxury and sustainability lifestyle into one. In order to determine success, Mark+Worth will view minimal customer returns, high volume of returning customers and an increase of glass and steel recycling key points within the business.

4

INTRODUCTION This company was built to cater toward the

13.5%

of

US

waste

luxury oriented male consumer, providing

of metals and glass in 2012 and has

high-end glass and metal objects within

continuously increased since then (“What

the categories of barware, accessories, and

does Waste Management do with Waste,

home goods with sustainability in mind.

Anyways?”). By extending the lifecycle of

With product quality and sustainability

wasted materials and altering them into

at the core of our business, our products

contemporary,

will be not only be keepsake items, but

sustainable practices, our company will

will inform the consumer of the origin of

model a new way of production within the

materials used to create this product.

luxury industry.

luxurious

was

composed

objects

using

To view WM’s report on waste see Appendix item A.

5

MISSION At Mark+Worth, our mission is to design and produce objects and home goods for men with the environment and wellbeing of others in mind. We pride ourselves on having sustainable practices within every aspect of our company, but not forgetting our place in the luxury market.

VISION Our vision is to positively affect our living environment by using sustainable practices to better the production of goods in the retail market. We stand as a leader in sustainability; our company values provide an example for others to follow.

We will extend the lifecycle of wasted materials and, in result, make a positive impact on the world.

VALUES Our sourcing and production practices reflect the level of importance that ethics and sustainability are to our company.

We value quality and longevity in our products and provide an assortment of objects tailored to meet the needs of our target audience.

6

TARGET MARKET OVERVIEW Our primary target market is an adult

Our secondary target market is a woman

male who lives a luxurious lifestyle and

who is shopping for a male in her life,

appreciates

contemporary,

whether that be a father, brother, husband,

and high quality items for himself and his

or friend. She values sustainability but

home; he does not want to compromise the

appreciates quality products. She researches

environmental and social impact on the

manufacturing

earth with these values. He is a working

conditions, and materials of everything she

man who does not have time to research the

buys.

minimalistic,

environmental and social impact of every item he buys something.

7

locations,

workers

MERCHANDISE CATEGORIES BARWARE

ACCESSORIES

HOME GOODS

-MULTI-PURPOSE GLASS SET

-CUFFLINKS

-CIGAR CUTTER

-STAINLESS STEEL ICE CUBES

-TIE CLIPS

-PAPERWEIGHT

-MARTINI SET

-COLLAR BARS

-SHOE FORM

-FLASK

-MONEY CLIP

-ASHTRAY

-WINE STOPPER

-PILL CASE

-ICE BUCKET

-COMB

-WINE BOTTLE HOLDER -COASTERS

TO SEE PRODUCT SPECIFICATION SHEETS VIEW APPENDIX ITEM B

8

MULTI-PURPOSE GLASS SET STYLE # 1001 MATERIAL: RECYCLED GLASS COST: $40.24 RETAIL: $190.00

STAINLESS STEEL ICE CUBES STYLE # 1002 MATERIAL: RECLAIMED STEEL COST: $29.55 RETAIL: $120.00

MARTINI SET STYLE # 1003 MATERIAL: RECLAIMED STEEL COST: $29.69 RETAIL: $100.00

FLASK STYLE # 1004 MATERIAL: RECLAIMED STEEL COST: $29.63 RETAIL: $90.00

WINE STOPPER STYLE # 1005 MATERIAL: RECYCLED GLASS COST: $31.41 RETAIL: $90.00

ICE BUCKET STYLE # 1006 MATERIAL: RECLAIMED STEEL COST: $32.31 RETAIL: $150.00

WINE BOTTLE HOLDER STYLE # 1007 MATERIAL: RECYCLED GLASS COST: $43.27 RETAIL: $190.00

SET OF COASTERS STYLE # 1008 MATERIAL: RECYCLED GLASS COST: $44.40 RETAIL: $190.00

CUFFLINKS STYLE # 1009 MATERIAL: RECLAIMED STEEL COST: $27.11 RETAIL: $120.00

TIE CLIP STYLE # 1010 MATERIAL: RECLAIMED STEEL COST: $21.78 RETAIL: $90.00

COLLAR BAR STYLE # 1011 MATERIAL: RECLAIMED STEEL COST: $23.69 RETAIL: $90.00

MONEY CLIP STYLE # 1012 MATERIAL: RECLAIMED STEEL COST: $24.43 RETAIL: $110.00

PILL CASE STYLE # 1013 MATERIAL: RECLAIMED STEEL COST: $41.85 RETAIL: $165.00

COMB STYLE # 1014 MATERIAL: RECYCLED GLASS COST: $38.41 RETAIL: $110.00

CIGAR CUTTER STYLE # 1015 MATERIAL: RECLAIMED STEEL COST: $44.31 RETAIL: $135.00

PAPER WEIGHT STYLE # 1016 MATERIAL: RECYCLED GLASS COST: $35.08 RETAIL: $90.00

SHOE FORM STYLE # 1017 MATERIAL: RECLAIMED STEEL COST: $48.76 RETAIL: $210.00

ASHTRAY STYLE # 1018 MATERIAL: RECYCLED GLASS COST: $35.16 RETAIL: $110.00

9

MEN’S ACCESSORY & HOMEWARE MARKET Mark+Worth will operate in predominately two different markets. The men’s accessories market in 2013 was worth $126.9 billion and is expect to increase 40.1% by 2018. Within the men’s accessories market the United States generates 30% of all revenues within the market.

Mark+Worth will also operate in the homewares market, which was valued at $98.2 billion. The homewares market is expected to grow 23.6% by 2017. 59.4% of the total homeware market occurs in North America; of that 59.4%, 85.3% of totally revenue is generated within the United States. Market size figures for both men’s accessories and homeware were found in MarketLine’s Industry Profiles, respectively. See Appendix item C.

10

UNIQUE MARKET CHARACTERISTICS

The object trend has become a growing

Sustainability is an ongoing trend. It is

market in fashion. Predominantly, objects are sold

becoming more and more important to retailers,

via websites that generally sell a large products

brands, and designers, that all elements of design,

assortment of home goods. Now objects have become

production, marketing, etc are sustainable. Due to

a curated list of a select number of objects personal

the internet and the vast amount of information

to the designer’s lifestyle and designed related to the

available consumers, it is the most important now

collections. Alexander Wang, one of fashions largest

that companies understand the importance of

fire starters has been a primary leader for object in

sustainability. Transparency with the consumer

fashion. Using objects equally to fashion accessories

has also caught on throughout major fashion

has made their level of importance and meaning vast.

brands such as H&M and Levi’s (“Sustainability”).

In May 2014 the mens jewelry and accessory

Consumers are starting to care about the origin and

market grew 9%, a substantial amount. Not only has

impact that products are having on not only the

the entire market grown, but according to Business of

environment but the workers and manufacturers

Fashion, men are more likely to spend a substantial

themselves.

amount on a quality piece of jewelry (Pratt np).

Because “objects” is a new market, there

is minimal research on it. That said, Mark & Worth

11

would be a innovator enterprise.

COMPETITION Because of Mark + Worth’s unique product categories and target market, there are no direct competition for the company. Competition partially lies within the several different markets we plan to operate in. Alexander Wang, Maison Margiela, Ralph Lauren and Tom Dixon sell object or home goods at a luxury price point. Brooks Brothers sell men’s accessories at a luxury price point where as J Crew operates at a moderate price point. Prospector Co. is considered competition for Mark + Worth because they are targeting a similar customer but focus more so on grooming products. Uncommon Goods competes with Mark+Worth within the objects category. Rose and Fitzgerald, Viva Terra and Bambeco compete with Mark + Worth by selling environmentally friendly and ethically manufactured home decor. Currently, there are no companies creating men’s objects (accessories, barware and home goods), sustainably and at a luxury price point.

12

COMPETITIVE ANALYSIS

To

begin

examining

the

competitive

Each category was weighted based on its

landscape relevant to Mark & Worth, we divided our

importance

competition in two categories. The first focused on

received a score of 1-5 in each. The company’s score

companies that sell objects (Alexander Wang, The Art

in each category was multiplied against the assigned

of Shaving, Brooks Brothers, Prospector Co., Ralph

weight of importance, resulting in the companies

Lauren, Maison Margiela, Tom Dixon and J. Crew).

score of sustainability. Scores were assigned based on

The second focused on companies that sell objects

information provided by the competitor’s website. In

in a sustainable way (Uncommon Goods, Rose and

doing so, the importance of sustainability by each of our

Fitzgerald, Viva Terra, and Bambeco). We compared

competitors was exposed.

these companies based on the average prices of the

object category.

score, we created a perceptual map. An analysis of this

A numeric assessment was created to evaluate

map showed a void in the marketplace within the luxury

the sustainability of our competitors. Companies were

space that emphasizes sustainability for our brand to

assigned scores in six categories of sustainability:

thrive.

manufacturing location and ethics, product quality,

environmental impact or footprint, life cycle after

criteria and scoring results see Appendix item D.

customer purchase, associations involved with, and overall sustainability.

13

within

sustainability

and

competitors

Using the average price and sustainability

To view price points of competition, scoring

HIGH SUSTAINABILITY

LOW PRICE

HIGH PRICE

LOW SUSTAINABILITY

14

FACTORS DRIVING GROWTH

The multidimensional male is a relatively

This leads to the point that there is an exponential

recent trend that has been widely accepted throughout

growth

potential

within

this

market.

Being

the US. Although Mark+Worth is not an apparel

innovators, Mark+Worth would be pioneering this

company, metro-sexuality coincides with much more

trend of presentation in the male home.

than what you wear, but the lifestyle one leads. Men

have recently taken up getting manicures and waxing

Wang, a paramount fashion influence, and Maison

their eyebrows, both being predominantly women

Margiela, a true artist, have begun to introduce

based activities. The fact that men and women are

accessories within their product mix that are

caring equally about their appearance, but they

not apparel accessories but lifestyle accessories.

are leading their lifestyle differently. Decor and

Mark+Worth wants to approach this trend by just

presentation are key elements to metro-sexuality, and

offering an exclusive amount of products. We aspire

there is a symbiotic relationship with what you wear

to become the destination for mens lifestyle objects.

and how you live.

Major fashion houses such as Alexander

Information

regarding

metro-sexuality

was found through WGSN’s report. To view report see Appendix item E.

15

SOURCING

OF

COMPETITION

Alexander Wang sources their materials based on the manufacturing

Ralph Lauren sources their materials based on the product. They

location of the product. Most commonly manufacturing in the US,

source their POLO line in factories in South Korea and have developed

China and Czech republic. (AlexanderWang.com)

a crucial relationship with that manufacturers and workers in those factories. (“News Releases”)

Bambeco hirers different artists to create their product assortment.

Artists wishing to be featured on Bambeco must follow their personal

Prospector Co. purchases inventory from artisans from across the

code of ethics as well as follow systems set up through Bambeco’s

world. Prospector Co. also manufactures their private label line

partners (The Nature Conservancy and Carbon Free®). (“Sustainability

consisting of men’s grooming products in the USA. (Prospectorco.

Principles”)

com)

Buying one of its suit supplier in the US in 2013, Brooks Brothers

Rose and Fitzgerald use natural resources from Uganda, fair trade

strive to make the best suit in North America. However they still

labor, artisan work as their sourcing practices. (Roseandfitzgerald.

source highly in China and the Far East. They claim to stay put, and

com/story).

not look for cheaper opportunities. (Marian) Tom Dixon sources his lighting products in China (Dunne) but many J Crew through their responsible sourcing program, which created

of his objects in certain collections are made from London sourced

strong bonds with their suppliers through training them on the

materials such as brick and crocuses; the objects are made in London

environmental impact, partnering with BSR (Business for Social

as well. (“Tom Dixon”) .

Responsibility) to help their goals of lowering their footprint, and Uncommon Goods source their products from artisans that have to

creating ethical business practices (“J CREW Social Responsibility”)

comply with their code of ethics. (“Code of Conduct”) Maison Margiela sources vintage fabrics from LA, Brussels, Paris and London Some of his objects are made from recycled materials and/or

Viva Terra selects merchandise from vendors that fit within their

are handmade. (Blanks)

personal checklist of values. (“Viva Terra Values”)

16

DISTRIBUTION OF COMPETITION Alexander Wang distributes objects through their direct website and in his 16 stores. (AlexanderWang. com) Bambeco sells products through their website and catalogue. (Bambeco.com) Brooks Brothers operate 280 stores worldwide (210 in the US) and sell through their world wide online shop. (BrooksBrothers.com) J.Crew operates 300 stores in the US and their online website. (JCrew.com) Martin Margiela sells their objects through their website and they have 42 stores around the globe.

(MaisonMargiela.com) Prospector Co. sells their products through their one personally owned retail store as well as wholesale to over 100 other stores and barber shops around the world, products can also be purchased through their online store available world wide. (ProspectorCo.com) Ralph Lauren operates 200+ stores in the US, their website, and major stockists such as Macy’s, Bergdorf Goodman, their Home stores sell their home goods and mens accessories. (RalphLauren. com) Rose & Fitzgerald sells their merchandise through their direct website. (RoseandFitzgerald.com) Tom Dixon sells objects/home goods through Mr. Porter. (TomDixon.com, MrPorter.com) Uncommon Goods distributes to over 100 countries through their online store. (UncommonGoods. com) Viva Terra sells through online store available in the U.S through their catalog (VivaTerra.com) Distribution information was gathered from each companies direct website.

17

PRIMARY TARGET CUSTOMER Age Range: 25-60 Gender: Male Education: Undergraduate and up Income Range: Upper Middle Class $100,000+ Race and Ethnicity: All races Geographic Location: Urban Areas, densely populated areas Perception: A company that produces modern, timeless objects that emulate luxury while, at the same time, being sustainable in any way possible.

Awareness: Friends, family, social media, promotions and online presence Motivation and Needs: Desire for urban, timeless objects that are high quality and luxurious. Wants objects that are long lasting and has a modern, simple aesthetic. Needs to know that his money does not negatively affect our environment Attitude and Personality: Mature, stylish, and urban. Conscious of environmental impacts Lifestyle: He works full time (at a high management position), has the luxury of spending money when he wants, has his own apartment in the city

18

SECONDARY TARGET CUSTOMER Age Range: 30-60 Gender: Female Education: Undergraduate and up Income Range: Upper Middle Class $100,000+ Race and Ethnicity: All races Geographic Location: Urban Areas, densely populated areas Perception: A company that produces modern, timeless objects that emulate luxury while, at the same time, being sustainable in any way possible.

Awareness: Friends, family, social media, promotions and online presence Motivation and Needs: Desire to provide a man in her life (husband, boyfriend, father, brother) with a gift that speaks to their modern, minimalistic aesthetic. Wants to give him something that he can keep forever, useful and luxurious. She desires to spend her money on something that is sustainable and responsible to the environment.

Attitude and Personality: Giving, mature, stylish, contemporary, dedicated, involved and aware Lifestyle: She is a professional who has a man in her life, she lives in the city, is busy and social, involved in the community and environment

19

FURTHER TARGET CUSTOMER RESEARCH In analyzing our demographic segmentation, Mark and Worth defined a few characteristics that our target customer portrays. To afford our luxury products, the segment of the market that is targeted would have a household income of around $100,000 or above, labeled upper middle class to higher class individuals. Figure 1 (Household Income Distribution) illustrates a map of America’s income distributed across the nation. As shown, the higher concentration of income surrounded large cities including San Francisco, Los Angeles, Denver, Dallas, Houston, Chicago, Miami, Washington DC, and New York City. Further analysis shows that the $100,000 household income consumer live in, or around, these urban areas (Figure 2 Median Household Income).

Psychographic information pertaining to these consumers were found on the Nielson 2014 PRIZM. There, in depth analysis and evaluation of consumer behaviors further define Mark and Worth’s primary and secondary consumers. The Nielsen Company has grouped our general consumer into the U1 Urban Uptown Social Group. This group is comprised of the wealthiest urban consumers. This demographic shop at exclusive retailers, are frequent to art galleries and auctions, travel abroad, drive luxurious cars, and spend a considerable amount of money on technology.

Mark and Worth targets the “Young Digerati” and “Money and Brains” profiles who fall under the Urban Uptown Social Group. Young Digerati are tech-savvy and live in fashionable neighborhoods on the urban fringe.” They are affluent and highly educated. They typically live in communities filled built of trendy apartments and condos, fitness clubs and clothing boutiques. From casual restaurants to bars, coffee shops, and breweries, the Young Digerati is a group of mixed raced intellectual individuals. The older generation that fall under Mark and Worth’s primary customer segmentation would be the Money & Brains. “The residents of Money & Brains seem to have it all: high incomes, advanced degrees, and sophisticated tastes to match their credentials.” These consumers age range from 45-64 with management level jobs, graduate degrees, and have a taste for high end, luxury brands and knowledge. These consumers are also comprised of a mix of ethnic diversity (Nielsen).

“Young Digerati Urban, Wealthy, Elite. Age from 25-44. In management positions with Graduate degrees +. Ethnic diversity of White, Asian, Hispanic and Mix. They shop at Bloomingdale’s and travel to Asia. They read well and watch the independent film channel. They typically own the Audi A3.” (PRIZM) “Money and Brains Urban, Wealthy and Elite. Age range from 45-64 with Management level jobs, graduate degrees and above, with an ethnic diversity of White, Black, Asian, Hispanic and Mix. They shop at Banana Republic, travel for business, read the New York Times, watch tennis, and own a Mercedes E Class.” (PRIZM) See Appendix item F for data used to create target customer profiles

20

CURRENT OBJECT LIFECYCLE

Through a survey we conducted, we discovered

When it comes to metal, the results we

many interesting facets to how people care for and

not all that different compared to the glass specific

dispose of home goods and objects, specifically ones

questions. People also keep their products as long

made of metal or glass. We had an almost equal age

as they can, unless damaged. When people clean

range of people who were 0-25 and 26-60. However,

their metal objects, there was generally the same

our survey reached more females than males.

amount of people who either hand wash, don’t

clean at all, or use metal specific cleaners to clean

With glass, we discovered the majority of

people use a dishwasher to clean their glass items

their products.

such as glassware and ice buckets. Surprisingly,

almost all people keep their items as long as they can,

usually get rid of their products due to damage.

versus throwing them away due the product being out

Again, this is a key success factor for Mark+Worth.

of style or replacing the product with a more advanced

We want our consumers to keep the items we

one. This fact works for our benefit, because our entire

provide for a lifetime. We sell investment pieces,

business model is based around the idea of investment

potential heirlooms. To view survey questions and

or pieces for life.

results see Appendix item G.

21

For both glass and metal objects, people

PRODUCT INSPIRATION

Through research, we found a void in the industry for luxurious home goods and accessories for men that encompass sustainability. Inspired by organic lines designed to last eternity; we want to create products with sharp angles that complement masculinity.

22

SOURCING

Mark+Worth

sources

from

multiple

For our steel objects, we have multiple

manufacturers throughout the US. Because we offer

manufacturers all located in the US as well. For

a wide range of products and assortments, we have

our accessories, we chose a manufacturer, Port of

multiple manufacturers for each type of product. For

Mystery, that specializes in unique men’s objects,

our glass products we manufacture with SCHOTT

using vintage metals and reusing broken jewelry

Manufacturing,

will

and making new repurposed objects. For our other

specifically be using their Home Tech division for

steel products within our barware collection we are

our products that is based in Louisville, Kentucky.

sourcing from Aloft Enterprises, based in Alabama,

Because the glass industry uses extremely high

which specializes in producing barware and items

amounts of energy compared to other industries

out of steel.

(Worrell), SCHOTT strives to minimize their impact

To view “Energy” An Energy Star Guide ForEnergy

by decreasing their energy output by innovating new

and Plan Managers see Appendix item H.

a

glass

manufacturer.

We

ways and processes of manufacturing and efficiency (“SCOTTS Environmental Policy”). We chose SCHOTT due to their innovative leaps in reducing their impact on the environment.

ALOFT ENTERPRISES

ALOFT ENTERPRISES LTD. 23

ASSORTMENT

PLAN

MARK+WORTH ASSORTMENT PLAN Style Number

Material

Size

Units

Cost

Cost Total

Retail

Retail Total

Mark Up %

Profit $

Margin %

1 Multi-purpose cups

Product:

1001

Glass

One Size

2000

$40.24

$80,480.00

$190.00

$380,000.00

372%

$149.76

79%

2 Ice Cubes

1002

Steel

One Size

1500

$29.55

$44,325.00

$120.00

$180,000.00

306%

$90.45

75%

3 Martini Shaker

1003

Steel

One Size

1200

$29.69

$35,628.00

$100.00

$120,000.00

237%

$70.31

70%

4 Flask

1004

Steel

One Size

2500

$29.63

$74,075.00

$90.00

$225,000.00

204%

$60.37

67%

5 Wine Stopper

1005

Glass

One Size

1000

$31.41

$31,410.00

$90.00

$90,000.00

187%

$58.59

65%

6 Ice Bucket

1006

Steel

One Size

1000

$32.31

$32,310.00

$150.00

$150,000.00

364%

$117.69

78%

7 Wine Bottle Holder

1007

Glass

One Size

1500

$43.27

$64,905.00

$190.00

$285,000.00

339%

$146.73

77%

8 Coasters

1008

Glass

One Size

1500

$44.40

$66,600.00

$190.00

$285,000.00

328%

$145.60

77%

9 Cufflinks

1009

Steel

One Size

2000

$27.11

$54,220.00

$120.00

$240,000.00

343%

$92.89

77%

1010

Steel

One Size

2000

$21.78

$43,560.00

$90.00

$180,000.00

313%

$68.22

76%

10 Tie Clip 11 Collar Bar

1011

Steel

One Size

2000

$23.69

$47,380.00

$90.00

$180,000.00

280%

$66.31

74%

12 Money Clip

1012

Steel

One Size

2500

$24.33

$60,825.00

$110.00

$275,000.00

352%

$85.67

78%

13 Pill Case

1013

Steel

One Size

1500

$41.85

$62,775.00

$165.00

$247,500.00

294%

$123.15

75%

14 Comb

1014

Glass

One Size

2500

$38.41

$96,025.00

$110.00

$275,000.00

186%

$71.59

65%

15 Cigar Cutter

1015

Steel

One Size

1000

$44.31

$44,310.00

$135.00

$135,000.00

205%

$90.69

67%

16 Paper Weight

1016

Glass

One Size

1000

$35.08

$35,080.00

$90.00

$90,000.00

157%

$54.92

61%

17 Shoe Form

1017

Steel

One Size

1000

$48.76

$48,760.00

$210.00

$210,000.00

331%

$161.24

77%

18 Ashtray

1018

Glass

One Size

2000

$35.61

$71,220.00

$110.00

$220,000.00

209%

$74.39

68%

27700

$585.82

$922,668.00

$2,240.00

$3,547,500.00

282%

$1,654.18

Total:

Each of our products assortment was based on the minimums for each manufacturer. Specifically, for SCHOTT Manufacturing, their minimums were 600 units. For our metal manufacturers, they varied. Because of these minimums our units range between 1,000 -2,500 units. Currently we are only distributing through our ecommerce website. However, due to our high volume of inventory, we plan to expand into other high end ecommerce retailers such as Mr. Porter, Bergdorf Goodman Home, Saks Fifth Avenue Home, and others.

To view individual product cost sheets see Appendix item I.

24

USE

&

DISPOSAL

LIQUOR/BARWARE MULTIPURPOSE GLASSWARE Set of four timeless bar glasses are handmade with 100% recycled glass. Hand wash with warm water. If you were to dispose of this product, please recycle the glass carefully.

RECLAIMED STEEL WHISKEY STONES Set of six, these steel whiskey stones are made of 100% reclaimed steel and retain the temperature perfect for cooling a beverage, without tainting the taste and aroma. Store in freezer for at least 4 hours, then fill glass up to the highest stone. Hand-dry each stone before replacing in freezer for next use. If you were to dispose of these, please refer to the disposal guide.

MARTINI SHAKER The martini shaker, made from 100% reclaimed steel, a quintessential piece to any mans bar, includes a removable top with strainer and removable lid. Hand-wash with warm water and soap. If you were to dispose of this product, please refer to the disposal guide.

FLASK The flask is perfect for the gentleman’s discrete drink. Made of 100% reclaimed steel. Hand wash with warm water and soap. If you were to dispose of this product, please refer to the disposal guide.

WINE STOPPER The wine stopper is made of 100% recycled glass. It is the perfect way to save wine after opening in a decorative way. We encourage you to reuse the cork by putting the cork into the wine stopper. Hand wash with warm water and soap. If you were to dispose of this product, please refer to the disposal guide.

COASTERS Set of five, these stackable coasters are made of 100% recycled glass, and perfect for the glassware to be placed on. Spot clean only. If you were to dispose of this product, please refer to the disposal guide.

ICE BUCKET This ice bucket is a perfect companion of the multipurpose glassware. Made of 100% reclaimed steel, hand wash with warm water and soap. If you were to dispose of this product, please refer to the disposal guide.

WINE BOTTLE HOLDER Made of 100% recycled glass, this wine holder tilts the wine bottle at a perfect angle so your cork doesn’t dry out. Spot clean. If you were to dispose of this product, please refer to the disposal guide.

25

USE

&

DISPOSAL

ACCESSORIES/HOMEGOODS CUFF LINKS Made of 100% reclaimed steel. Wear on dress shirts in buttonholes on cuffs. If you were to dispose of this product, please refer to the disposal guide.

TIE CLIP This accessory is essential to every mans wardrobe. Clip onto tie to secure tie in place. Made of 100% reclaimed steel. If you were to dispose of this product, please refer to the disposal guide.

COLLAR BAR The collar bar is placed underneath the shirt collar and connects on the outside of the collar. The collar bar is used to hold the two sides of a collar together for a sharp look. The collar bar is made from 100% reclaimed steal, which can be cleaned by hand with minimal soap and water.

The collar bar was manufactured to last a lifetime. If the collar bar breaks you can send us the damaged item to be properly disposed of and recycled. If you want to dispose the collar bar on your own please refer to our disposal guide.

MONEY CLIP The money clip is made from 100% reclaimed steel and is used to hold cash and cards. The money clip can be cleaned with minimal soap and water. If you were to dispose of these, please refer to the disposal guide.

PILL CASE The pill case is made from 100% reclaimed steel. The pill case was designed to be an update to the tradition pill case. The case is divided into four sections and is perfect for storing supplements and vitamins. The pill case can be cleaned with minimal soap and water. If you were to dispose of this, please refer to the disposal guide.

COMB The comb is made from 100% recycled glass and is an essential for every image conscious man. The comb can be cleaned with minimal soap and water. If you were to dispose of these, please refer to the disposal guide.

SHOE FORM The shoe form is made from 100% reclaimed steel and is used to keep the shape of your leather shoes. The forms are placed inside the shoes and are adjustable through the use of a spring mechanism. The shoe form can be cleaned with minimal soap and water. If you were to dispose of these, please refer to the disposal guide.

CIGAR CUTTER The cigar cutter is made from 100% reclaimed steal. The cigar cutter is used to cut the tip of a cigar off. The cigar cutter can be cleaned with minimal soap and water. If you were to dispose of these, please refer to the disposal guide.

PAPERWEIGHT The paper weight is made from 100% recycled glass and is used to keep important papers in place. The paperweight can be clean with minimal soap and water if need be. If you were to dispose of these, please refer to the disposal guide.

ASHTRAY The ashtray is made from 100% recycled glass and is used to collect ash and hold cigars and cigarettes. The ashtray can be cleaned using minimal soap and water. If you were to dispose of these, please refer to the disposal guide.

26

OUR

PRODUCT’S

LIFECYCLE

34.6 As a certified B Corporation, our company meets the rigorous standards of social and environmental performance within our company’s headquarters (“B

Corporation”).

This

assessment,

for

environmental impact specifically, is out of 50 (“The Complete Life Cycle Assessment.”), (“Factors Influencing the Cullet Markets.”) (“Glass Lifecycle”)

total points. That said, the goal of the B assessment is not to have 50/50 points. This assessment is just to simply measure the practices within the company’s headquarters and use these questions to prompt improvement. By filling out the survey, we ended up with a score of 34.6/50. These questions also prompted us of the best work practices of sustainability throughout our headquarters.

This information was gathered by a phone call with B-Corporations customer service. To view B-Corporation assessment see Appendix item J. To view reports used to create product lifecycle see Appendix item K.

(“Life Cycle Assessment Methodology Report.”)

(Choi)

27

BRANDING

28

SOCIAL

29

MEDIA

E-COMMERCE

30

BRANDING

COSTS

UNIT

COST PER UNIT

TOTAL COST

SOCIAL MEDIA

X

FREE

FREE

WEBSITE

1

$288/YR

$288/YR

CUSTOM STAMP

5

$18.95

$94.75

WATER BASED INKPADS

5

$10.00

$50.00 TOTAL: $432.75

Throughout our company headquarters, we strive to run completely paper free. Throughout the office, we would only print something if it were 100% necessary. For business purposes, each staff member has a stamper with environmentally friendly stamping ink for our business cards. We then would use scrap materials from packaging, receipts, or any reusable clean material that can be stamped. If necessary, we would stamp the top of the paper for our letterhead. This way we can try to lessen our footprint throughout the office with our branding and communication. We use social media as another communication tool to inform our customers about our practices and objects.

31

PRODUCT

PACKAGING SPI Packaging designs custom protective packaging molds depending on the design of a particular product. So, for each design it costs $4,000 to generate a mold that will keep the product secure. They use eco-friendly 100% raw materials, what they refer to as Eco-Friendly Pulp Packaging. The packaging is 100% recyclable, and there is zero manufacturing waste when producing the packaging. Not only is the packaging sustainable, but it is also water resistant and completely protected. The minimum order after designing the mold for your product is 30,000 units. A customizable card comes with each protective packaging. This card contains life cycle information about our products, sourcing information, an disposal information for the consumer.

32

CONCLUSION Mark+Worth’s general impact is existent, but our company strives to constantly think about lessening our footprint through all aspect of our company: design, manufacturing, disposal, and lifecycle. Because of our large assortment of products, we have multiple manufacturers throughout the US. Through the B Corporation assessment, we discovered we had a 34.6/50 on environmental impact of our headquarters. Because we have multiple manufacturers, Mark+Worth as a company runs completely paper free, even using recycled materials for our business cards. We hope to change consumer behavior through our informative cards that come with each product Mark+Worth, informing our customer of where their specific product is made, how far it has traveled, and what it is made of. Through our Disposal Guide, we hope our customers will learn about hot to recycle glass and steel specifically properly. Mark+Worth objects are keepsake items that men and women both will use for a lifetime.

33

WORKS

CITED

1.“B Corporation.” What Are B Corps? Web. 27 Feb. 2015. <http://www.bcorporation.net/what-are-b-corps>.

2. Blanks, Tim. “Maison Margiela Fall 2013 Couture Fashion Show: Runway Review - Style.com.” Style.com. 3 July 2013. Web. 27 Feb. 2015. <http://www.style.com/fashion-shows/fall-2013-couture/maison-martin-margiela>.

3. Choi, Hyun. “Hybrid Life Cycle Assessment of Steel Production with Carbon Capture and Storage.” NTNU- Norwegian University of Science and Technology, 1 June 2013. Web. 2 Mar. 2015. <http://www.diva-portal.org/smash/get/diva2:654867/FULLTEXT01.pdf>.

4. “Coaster Set Women - Objects Women on Alexander Wang Online Store.” Alexander Wang. Web. 27 Feb. 2015. <http://www. alexanderwang.com/us/shop/unisex/objects-coaster-set-studded-coaster-set_cod51119527ne.html>.

5. “Code of Conduct.” Uncommon Goods. Web. 27 Feb. 2015. <http://www.uncommongoods.com/images/vendorCode.pdf>.

6. “Custom Protective Packaging - Sustainable Packaging Industries.”Sustainable Packaging Industries. Web. 28 Feb. 2015. <http://www.s-packaging.com/products/protective-packaging/>.

7. Dunne, Carey. “Tom Dixon’s Sculptural Artifacts Recreate The Smell Of London In Paris.”Fast Company. 27 Aug. 2014. Web. 27 Feb. 2015. <http://www.fastcodesign.com/3034870/wanted/tom-dixons-sculptural-artifacts-recreate-the-smell-of-london-inparis>.

8.“Factors Influencing the Cullet Markets.” Markets for Recovered Glass. Washington, D.C., 1992. Print.

9. “Glass: Life Cycle.” Pratt CSDS. Web. 2 Mar. 2015. <http://csds.pratt.edu/resource-center/materials-research/material-life-cycles/glass-life-cycle/>.

10. “Homewares in North America.” MarketLine Industry Profile. An Informa Business, 1 Apr. 2014. Web. 26 Feb. 2015. <file:///C:/Users/Administrator/Downloads/homewares report (1).pdf>.

11. “J.CREW - Social Resposibility.” J.CREW - Social Resposibility. Web. 27 Feb. 2015. <https://www.jcrew.com/flatpages/social_ responsibility.jsp>.

12. “Life Cycle Assessment Methodology Report.” World Steel. Web. 2 Mar. 2015. <http://www.worldsteel.org/dms/internetDocumentList/bookshop/LCA-Methodology-Report/document/LCA Methodology Report.pdf>.

34

WORKS

CITED

13. “Mapping America: Every City, Every Block.” The New York Times. Census Bureau’s American Community Survey, 13 Dec. 2010. Web. 18 Feb. 2015. <http://projects.nytimes.com/census/2010/explorer?hp> 14. Marian, Petah. “Speaking with Style: Joe Dixon, SVP of Production, Brooks Brothers.”Interview: Joe Dixon, Brooks Brothers. 21 Jan. 2013. Web. 27 Feb. 2015. <http://www.just-style.com/interview/joe-dixon-svp-of-production-brooks-brothers_ id116460.aspx>.

15. Mellery-Pratt, Robin. “As Attitudes Shift, Men’s Jewelry Grows - The Business of Fashion.”The Business of Fashion. 31 Oct. 2014. Web. 27 Feb. 2015. <http://www.businessoffashion.com/2014/10/attitudes-shift-mens-jewellery-grows.html>.<http:// www.businessoffashion.com/2014/10/attitudes-shift-mens-jewellery-grows.html>.

16. “Mens Grooming The Gobal View.” WGSN Fashion Trend Forecasting and Analysis. 3 Mar. 2014. Web. 13 Feb. 2015. <http:// www.wgsn.com/content/reports/#/Think Tank/search/Mens%20Grooming>.

17. “Menswear in the United States.” An Informa Business, 1 July 2014. Web. 26 Feb. 2015. <file:///C:/Users/Administrator/ Downloads/menswear market.pdf>.

18. “Multidimensional Men.” WGSN Fashion Trend Forecasting and Analysis. WGSN, 18 Aug. 19. “News Releases.” Polo Ralph Lauren Corporation. 23 July 2012. Web. 27 Feb. 2015. <http://investor.ralphlauren.com/phoenix. zhtml?c=65933&p=irol-newsArticle&ID=1451252>.

20. “PRIZM Market Segmentation Research, Tools, Market Segment Research, - Market Segments, Consumer Markets, Customer Segmentation Profiling.” PRIZM Market Segmentation Research, Tools, Market Segment Research, - Market Segments, Consumer Markets, Customer Segmentation Profiling. The Nielsen Company. Web. 18 Feb. 2015. <http://www.claritas.com/MyBestSegments/Default.jsp?ID=38&id1=1027&webid=&id4=01&social=yes>.

21. “SCHOTT’s Environmental Policy.” SCHOTT Press Releases as RSS. 1 Jan. 2015. Web. 27 Feb. 2015. <http://www.us.schott. com/english/company/environment/index.html>.

22. “Steel: The EnviroMetal.” SRI Steel Recycling Institute. Web. 27 Feb. 2015. <http://www.recycle-steel.org/>.

23. “Story.” Rose Fitzgerald. 5 Sept. 2013. Web. 27 Feb. 2015. <http://www.roseandfitzgerald.com/story/>.

24. “Sustainability.” Sustainability. Web. 27 Feb. 2015. <http://about.hm.com/en/About/sustainability.html>.

35

WORKS

CITED

25. “Sustainability Principles.” Bambeco. Web. 27 Feb. 2015. <http://www.bambeco.com//about_us/bambeco_commitment. asp>.

26. “Tom Dixon.” China Tom Dixon, Tom Dixon Manufacturers & Suppliers. Web. 27 Feb. 2015. <http://www.made-in-china. com/products-search/hot-china-products/Tom_Dixon.html>.

27. “VivaTerra Values - VivaTerra.” VivaTerra Values - VivaTerra. Web. 27 Feb. 2015. <http://www.vivaterra.com/vivaterra-values/>.

28. “What Does Waste Management Do With Waste, Anyway?” Web. 27 Feb. 2015. <http://www.wm.com/about/community/pdfs/ follow_the_waste_stream.pdf>.

29. “The Complete Life Cycle Assessment.” When It Comes To Carbon Footprints, Are We Getting the Full Picture? Print.

30. Worrell, Ernst, Christina Galitsky, Eric Masanat, and Wina Graus. “Energy.” An Energy Star Guide ForEnergy and Plan Managers. 1 Mar. 2008. Web. 27 Feb. 2015. http://www.energystar.gov/ia/business/industry/Glass_Manufacturing_Energy_Guide. pdf

36

APPENDIX

ITEM

A

What does Waste Management do with trash, anyway?

Paper

Follow the Waste Stream

Paper recyclables are separated into four categories: • Corrugated Boxes • Old Newsprint (ONP) • Mixed Paper • Office Mix

The “waste stream” describes the entire life cycle of the garbage we produce – from putting out the trash and recycling for pickup to disposal, energy production and the reuse of recycled materials.

Let’s follow the journey . . .

Plastics

Recycling Facility

al os Disp

n ei lac y... a up s yo his w rial t Mate go rash the t

Rec

ycle

ycle Materials you rec

is th go

.. y. wa

Glass Collection trucks bring recyclables to a WM Recycle America facility. The recyclables are unloaded onto an area called the “tipping floor.” Notice that this is a ”single-stream” facility.

That makes recycling easier for everyone in the community, since recyclables don’t need to be separated for collection.

From the tipping floor, recyclables are placed on conveyor belts, where they are sorted by machine or hand into broad categories of paper, plastic, glass and metal.

Depending on where you live, the trash you put out for collection may go to a waste-to-energy facility or a landfill.

Landfill A landfill is an engineered system designed for safe, environmentally sound long-term waste disposal. Trash is deposited in the landfill and compacted. The landfill’s liner and gas and leachate extraction systems protect the surrounding land, air and water supply, and operating procedures include regular environmental monitoring.

Cullet is for trans of custom a numbe includin for consu road bed counter

Glass recyclables are crushed to form cullet, which is then cleaned of debris and contaminants. Depending on the facility, glass may be sorted by color before or after crushing, or it may be shipped to end users without sorting.

Metals

Waste-to-Energy Facility In a waste-to-energy facility, through the use of extremely high-temperature combustion, trash is converted into clean, renewable energy that is used to light homes and heat buildings. Emissions from the waste-to-energy facility are thoroughly cleaned using state-of-the-art air quality control systems.

Mixed plastic containers are sorted by type and color.

Air is blown into the mix to separate heavier and lighter plastics. In some facilities, plastic containers are optically scanned for separation into types, such as PET, HSPE, etc.

Magnets are used to separate the steel from the rest of the recycling stream. Steel attracted to the magnet is removed to a storage bin for baling.

Aluminum remains on the sort belt and is mechanica separated by an eddy curr

After separat cans are crus and baled for transport to s or aluminum

Waste-to-Energy Trash brought to waste-to-energy plants is inspected to make sure it only contains acceptable municipal waste. This waste is deposited into a refuse pit. A crane picks up the trash from the refuse pit and loads it into hoppers. Hydraulic rams feed the trash into furnace boiler units.

The boiler units use the trash as fuel.

Heat from combustion of the trash converts water in the boiler’s walls into steam

Landfill-Gas-to-Energy Residential and commercial waste is transported to Waste Management landfills for permanent disposal.

Much of this waste, including food, paper and cardboard, is organic in nature. Bacteria digest this organic waste and produce methane gas and carbon dioxide as natural by-products.

The methane gas is recovered via a series of wells drilled into the landfill. These wells are connected by a common pipe system that collects the gas and delivers it to a fuel conditioner.

Old newspaper is de-inked by washing and rinsing it in large vats of water. This process also separates the short fibers from the long fibers.

Paper recyclables are baled and sold primarily to paper mills.

Baled, recycled plastics are sent to a plastics remanufacturing plant.

The plastics are ground up, washed, melted and formed into plastic pellets. The pellets are used to make containers, bottles, paint, clothing, furniture and many other consumer goods.

are sorted by type and color. to separate heavier and facilities, plastic containers separation into types, such

For use in making new glass containers, the cleaned cullet is mixed with sand, soda ash, feldspar and limestone at a glass plant.

boiler units use trash as fuel. from combustion he trash converts er in the boiler’s s into steam

Aluminum Plant Utility

The high pressure steam is routed to a turbine generator to produce electricity, which is sold to the local utility.

Aluminum is melted and poured into ingot molds or rolled into sheets. The ingots are used by industries to make new aluminum products.

The steel is heated in large vats and poured onto sheets. The steel is coated with tin and shaped into cans.

The sheets are shaped into cans, siding, storm window frames and other products.

The electricity is delivered via utility transmission lines to residential and commercial customers.

Air pollution control equipment cleans the waste-to-energy plant’s emissions. The cleaned exhaust gas exits the plant’s stacks.

Iron and steel are separated from the waste-to-energy plant’s inert ash residue and sent to recycling facilities.

All of the plant's functions are monitored in a stateof-the-art computerized central control room, manned 24 hours a day by trained operators.

Landfill gas may also be piped off-site to industrial customers for use as an alternative fuel source.

The fuel conditioner de-waters, filters, and pressurizes the gas so it can be used by the power-generating equipment.

The gas is piped to an electricity generating plant, on- or off-site, where it is used as fuel to turn engines or turbines to generate electricity.

Green Energy

Steel Mill

Tin and steel are recovered through chemical and electrolysis baths.

Then they are purified, melted and cast into ingots.

Recycled Metal

Glass Plant

Aluminum remains on the sort belt and is mechanically separated by an eddy current.

After separation, cans are crushed and baled for transport to steel or aluminum mills.

This mixture is fed into a furnace and melted at temperatures reaching 2,700º Fahrenheit. Using recycled glass in this way reduces emissions and energy usage, extends the life of plant equipment, and conserves raw materials.

Green Energy

Cullet is loaded onto trucks for transport to a variety of customers. It’s used in a number of applications, including new containers for consumer products, road bedding, sandblasting, counter tops, and other uses.

Recycled Glass

Plastics Plant

Textile, plastic, bottle, carpet and other manufacturers use these commodities.

s then he facility, g, or it

Paper Mill

Recycled Plastic

Boxes int (ONP) r

Recycled Paper

Some mills are able to use 100% recycled paper, while in others, recycled paper (long fibers) is combined with wood scraps from lumber mills. This is mixed to a pulp and poured onto large rollers and drained. The sheet is lifted and fed through heated rollers, then trimmed and rolled. The rolls are sent to printing plants.

arated

Closing the Lo

Green energy is delivered and commercial custome

Recycled materials are pu produce or package their

Consumers buy the produ use the products, we crea

Responsible D

Consumers can responsib light bulbs (CFLs), batter Think Green From HomeS

It’s as easy as ordering th with recyclables and mai shipping label.

www.thinkgreenfromhom

APPENDIX

ITEM

B

APPENDIX

ITEM

C

MARKET OVERVIEW Market definition The homewares market includes the following segments: home hardware, lighting, textiles and soft furnishings, and window dressings. Home hardware includes the sale of crockery, cutlery, glassware, home cleaning, home storage, ironing boards, kitchen utensils, rubbish bins and other home hardware like household scales and other mechanical devices. Lighting includes the sale of lamp shades, light/lamp stands, light bulbs, and table and desk lamps. Textiles and soft furnishings include the sale of bathroom textiles, beddings, cushions, futons, hammocks, mattresses, table linen and other textile and soft furnishings like clothing and furniture coverings, door mats, laundry bags, parasols, shoe bags and shopping bags. Window dressings include the sale of blinds, curtain poles, rails, curtains and hooks. The market is valued at retail selling prices with any currency conversions calculated using constant annual average 2011 exchange

MarketLine Industry Profile

rates.

Homewares in North America

For the purposes of this report, the Americas consists of North America and South America.

North America consists of Canada, Mexico, and the United States.

South America comprises Argentina, Brazil, Chile, Colombia, and Venezuela.

Market analysis The North American homewares market recovered from mild decline in 2009 to grow between 2008 and 2012, with strong growth particularly in 2012. The market is forecast to continue expansion, not achieving the same heights as 2012

April 2013

but consistently growing moderately.

The North American homewares market is expected to generate total revenues of $98.2 billion in 2012, representing a compound annual growth rate (CAGR) of 2.7% between 2008 and 2012. In comparison, the Canadian and Mexican markets will grow with CAGRs of 1.7% and 4.7% respectively, over the same period, to reach respective values of $11.5

Reference Code: 0205-2420

billion and $2.9 billion in 2012.

Publication Date: April 2013

The home hardware segment is expected to be the market's most lucrative in 2012, with total revenues of $58.3 billion, equivalent to 59.4% of the market's overall value. The textiles and soft furnishings segment will contribute revenues of $25.4 billion in 2012, equating to 25.8% of the market's aggregate value.

WWW.MARKETLINE.COM MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED

The performance of the market is forecast to accelerate, with an anticipated CAGR of 4.3% for the five-year period 2012 - 2017, which is expected to drive the market to a value of $121.3 billion by the end of 2017. Comparatively, the Canadian and Mexican markets will grow with CAGRs of 3.5% and 4.6% respectively, over the same period, to reach respective values of $13.6 billion and $3.7 billion in 2017.

North America - Homewares Š MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED

0205 - 2420 - 2012 Page | 1 North America - Homewares Š MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED

0205 - 2420 - 2012 Page | 6

MARKET DATA

Geography segmentation

Market value

Canada accounts for a further 11.7% of the North American market.

The United States accounts for 85.3% of the North American homewares market value.

The North American homewares market grew by 8.5% in 2012 to reach a value of $98.2 billion.

The compound annual growth rate of the market in the period 2008–12 was 2.7%.

Table 3: North America homewares market geography segmentation: $ billion, 2012(e)

Table 1: North America homewares market value: $ billion, 2008–12(e) Year

$ billion

€ billion

2008

88.4

63.5

2009

88.1

63.3

-0.3

2010

88.8

63.8

0.7

2011

90.5

65.0

1.9

2012(e)

98.2

70.6

8.5

CAGR: 2008–12 SOURCE: MARKETLINE

% Growth

Geography

2012

%

United States

83.8

85.3

Canada

11.5

11.7

Mexico

2.9

3.0

98.2

100%

Total SOURCE: MARKETLINE

MARKETLINE

2.7% MARKETLINE

Figure 3: North America homewares market geography segmentation: % share, by value, 2012(e)

Figure 1: North America homewares market value: $ billion, 2008–12(e)

SOURCE: MARKETLINE

SOURCE: MARKETLINE

North America - Homewares © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED

MARKETLINE

MARKETLINE

0205 - 2420 - 2012 Page | 7

North America - Homewares © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED

0205 - 2420 - 2012 Page | 9

MARKET OVERVIEW Market definition The menswear market includes men’s activewear, casualwear, essentials, formalwear, formalwear-occasion and outerwear.

The market is valued at retail prices.

All currency conversions were carried out using constant average 2013 exchange rates.

For the purposes of this report, the Americas consists of North America and South America.

North America consists of Canada, Mexico, and the United States.

MarketLine Industry Profile

South America comprises Argentina, Brazil, Chile, Colombia, and Venezuela.

Menswear in the United States

Market analysis The US menswear market continued to experience strong, steady growth in recent years. This trend is predicted to continue over the forecast period, with annual rates largely remaining over 7%.

The US menswear market had total revenues of $126.9bn in 2013, representing a compound annual growth rate (CAGR) of 6.6% between 2009 and 2013. In comparison, the European and Asia-Pacific markets grew with CAGRs of 0.9% and 6.8% respectively, over the same period, to reach respective values of $124.6bn and $130.4bn in 2013.

July 2014

Clothing, footwear, sportswear & accessories retailers account for the largest proportion of sales in the US menswear market in 2013; sales through this channel generated $68.0bn, equivalent to 53.6% of the market's overall value. Sales through the department stores generated revenues of $29.8bn in 2013, equating to 23.5% of the market's aggregate revenues.

Reference Code: 0072-2250

The performance of the market is forecast to accelerate, with an anticipated CAGR of 7.0% for the five-year period 2013 - 2018, which is expected to drive the market to a value of $177.8bn by the end of 2018. Comparatively, the European

Publication Date: July 2014

and Asia-Pacific markets will grow with CAGRs of 2.4% and 8.4% respectively, over the same period, to reach respective values of $140.6bn and $194.8bn in 2018.

WWW.MARKETLINE.COM MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED

United States - Menswear © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED

0072 - 2250 - 2013 Page | 1 United States - Menswear © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED

0072 - 2250 - 2013 Page | 7

MARKET DATA

MARKET SEGMENTATION

Market value

Geography segmentation

The United States menswear market grew by 6.5% in 2013 to reach a value of $126.9 billion.

The United States accounts for 30% of the global menswear market value.

The compound annual growth rate of the market in the period 2009–13 was 6.6%.

Asia-Pacific accounts for a further 30.8% of the global market.

Table 1: United States menswear market value: $ billion, 2009–13

Table 2: United States menswear market geography segmentation: $ billion, 2013

Year

$ billion

€ billion

2009

98.4

74.1

2010

101.2

76.2

2011

111.1

83.7

2012

119.2

2013

126.9

% Growth

Geography

2013

%

Asia-Pacific

130.4

30.8

2.9%

United States

126.9

30.0

9.8%

Europe

124.6

29.5

89.7

7.2%

Rest of the World

41.3

9.7

95.6

6.5% Total

CAGR: 2009–13 SOURCE: MARKETLINE

6.6%

United States - Menswear © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED

423.2

100% MARKETLINE

MARKETLINE

Figure 1: United States menswear market value: $ billion, 2009–13

SOURCE: MARKETLINE

SOURCE: MARKETLINE

Figure 2: United States menswear market geography segmentation: % share, by value, 2013

MARKETLINE

0072 - 2250 - 2013 Page | 8

SOURCE: MARKETLINE

United States - Menswear © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED

MARKETLINE

0072 - 2250 - 2013 Page | 9

APPENDIX

ITEM

D

Competitor’s Price Points and Average Price Alexander Wang Brooks Brothers Prospector Co Ralph Lauren Maison Margiela Tom Dixon Uncommon Goods Rose and Fitzgerald Viva Terra Bambeco J Crew

$32-­‐$100 $9-­‐$1200 $8-­‐$150 $30-­‐$1995 $40-­‐$660 $35-­‐$255 $8.50-­‐$350 $25-­‐$155 $10-­‐$589 $15-­‐$3875 $20-­‐$200

$ 146.13 $ 100.00 $ 125.00 $ 35.00

$ 330.00 $ 337.00 $ 45.00

$ 70.00

$ 98.00

$ 98.00

$ 28.00

Scoring Assessment SCORE Criteria:

Manufacturing Location/Ethics Product Quality Environmental Impact footprint Lifecycle Post Purchase Associations Involved with

Alexander Wang

0

3

0

2

0

1

29.85%

The Art of Shaving

2

2

2

2

0

1.7

50.75%

Brooks Brothers

2

3

3

2

3

2.6

77.61%

Prospector Co

2

3

2

2

1

2.05

61.19%

Ralph Lauren

0

3

2

2

3

1.95

58.21%

Maison Margiela

0

3

1

2

0

1.25

37.31%

Tom Dixon

0

3

2

2

0

1.5

44.78%

Uncommon Goods

3

2

3

4

3

3

89.55%

Rose and Fitzgerald

3

2

3

4

3

3

89.55%

Viva Terra

3

2

3

4

3.5

3.075

91.79%

Bambeco

3

2

3

4

3

3

89.55%

J Crew

3

2

2

3

3

2.55

76.12%

Mark + Worth

3

3

3

4

3

3.2

95.52%

3

3

3

4

4

3.35

100.00%

Manufacturing Location/Ethics

20.00%

Product Quality

20.00%

Environmental Impact footprint

25.00%

lifecycle post purchase

20.00%

Associations Involved with

15.00%

Scoring Criteria Scoring Numbers: Manufacturing: 0.

Unknown 1.

Nothing Ethical or sustainable about manufacturing, manufacture in an unsafe environment 2.

Slightly transparent, involved in one or two ethical companies, but not 100% transparent 3.

Manufacture within regulations, or made in US. Transparent and informative about their manufacturing.

Quality: 0.

Unknown 1.

Low quality, low price 2.

High quality, low price 3.

High quality, high price Environmental Impact/Footprint: 0.

Unknown 1.

High impact on environment, large footprint 3/3 elements 2.

Impact on environment, 2/3 elements 3.

Reduces impact on all three elements of environmental impact Lifecycle Post Purchase: 0.

Unknown 1.

Thrown in landfills, not recycled, short term use 2.

Thrown away, not recycled, long term use 3.

Long term use, able to be recycled, never thrown away, 4.

Initiatives to promote elongating lifecycle Associations involved in: 0.

Unknown 1.

Involved in none 2.

Involved in associations not related to sustainability 3.

Minimum involved in California Transparency Act 4.

Involved in multiple associations 5.

Impacting other companies to be sustainable

APPENDIX

ITEM

E

Think Tank > Consumer > Consumer Attitudes

FLUIDITY AND ADAPTABILITY ARE THE CORNERSTONES OF THE NEW MALE. THOUGH HE STILL HAS REGARD FOR TRADITIONAL MACHO SENTIMENT, HE IS BECOMING MORE OPEN TO NEW IDEALS IN FASHION, WORK, SPORTS AND THE HOME. THE CONTEMPORARY MULTIDIMENSIONAL MALE EXPERIMENTS WITH GENDER RULES TO REDEFINE HIS OWN STANDARDS.

Women are outranking men in the classroom and the office, encouraging men to redefine their ways of operating in order to compete Men are reinventing themselves, borrowing traits from feminine traditions, but stamping their own mark on parenting and running households In terms of image, men are blending retro macho ideals with a strong interest in grooming and a more open view of sport and exercise Men still want their own time and space to engage in masculine pursuits; they want to be able to separate themselves from femininity Fashion echoes the mood of the era; menswear designers are picking and choosing elements associated with both genders to redefine the concept of ‘unisex’

WGSN street shot, London Collections: Men

Think Tank > Consumer > Consumer Attitudes

Masculinity is becoming more nuanced, and often contradictory.

While a new softness is acceptable for men, retro elements of manliness are simultaneously returning, along with a multidimensional concept of masculinity. This can be seen in new fitness trends for men, as discussed in the recent Fit for Life report. Two trends are developing simultaneously: extremely gruelling obstacle courses such as Tough Mudder and Rat Race Dirty Weekend, and the uptake of traditionally female-dominated workouts such as yoga and Pilates. In recent years, athletes such as LeBron James, Ryan Giggs and the New Zealand All Blacks rugby team have attributed staying focused and supple to yoga.

Tough Mudder

This trend mirrors female attitudes, as discussed in the New Feminism report; there is a delight in adhering to and counteracting gender cliches, often simultaneously. Extremes are relished, rather than compromised. The rise of dance genre jookin, a descendant of 1990s gangsta walking, extends and challenges traditional ideas about masculinity. Dancers perform turns and vertiginous balances on tiptoe with a hip-hop feel â&#x20AC;&#x201C; while often elegant and fluid, the point work they do is anything but effeminate. One of the sceneâ&#x20AC;&#x2122;s biggest stars, Lil Buck debuted at the New York City Ballet in May 2014.

Chris Courtney

Think Tank > Consumer > Consumer Attitudes

Lil Buck

APPENDIX

ITEM

F

APPENDIX

ITEM

G

APPENDIX

ITEM

H

LBNL-57335-Revision

ERNEST ORLANDO LAWRENCE BERKELEY NATIONAL LABORATORY

Energy Efficiency Improvement and Cost Saving Opportunities for the Glass Industry An ENERGY STAR® Guide for Energy and Plant Managers

1. Introduction As U.S. manufacturers face an increasingly competitive global business environment, they seek out opportunities to reduce production costs without negatively affecting product yield or quality.

The volatility of energy prices in today’s marketplace can also negatively affect predictable earnings, which is particularly concerning for publicly traded companies in the U.S. glass industry. For public and private companies alike, increasing energy prices are driving up costs while decreasing value added. For example, because of its reliance on natural gas as a process fuel, the glass industry was hit especially hard by the seasonal increases in natural gas prices in 2000 (James 2001).

The challenge of maintaining high product quality while simultaneously reducing production costs can often be met through investments in energy-efficient technologies and practices.

Energy-efficient technologies frequently offer additional benefits, such as quality improvement, increased production, and increased process efficiency, which can lead to further productivity gains. Energy efficiency is also an important component of a company’s environmental strategy, as energy efficiency improvements can often lead to reductions in pollutant emissions. A strong energy management program can also provide a solid foundation for corporate greenhouse gas management programs and can be an effective strategy to work towards the so-called “triple bottom line” that focuses on the social, economic, and environmental aspects of a business.1 In short, energy efficiency investment is sound business strategy in today's manufacturing environment.

Environmental Energy Technologies Division

To assist industry in improving its competitiveness through increased energy efficiency and reduced environmental impact, the federal government offers several voluntary programs.

ENERGY STAR® is a voluntary program operated by the U.S. Environmental Protection Agency (EPA) in coordination with the U.S. Department of Energy (DOE) that stresses the need for strong and strategic corporate energy management programs. ENERGY STAR also provides a host of energy management tools and strategies to support the successful implementation of corporate energy management programs. This Energy Guide reports on research conducted to support the U.S. EPA’s ENERGY STAR Focus on Energy Efficiency in Glass Manufacturing, which works with the U.S. glass industry to identify information and resources for energy efficiency improvement. For further information on ENERGY STAR and its available tools for facilitating corporate energy management practices, visit www.energystar.gov.

Sponsored by the U.S. Environmental Protection Agency

In this Energy Guide, energy efficiency opportunities for glass plants are assessed. The U.S. glass industry includes establishments engaged in manufacturing flat glass, container glass, specialty glass, and fiberglass. These four primary industry segments produce over 20 million tons of glass per year, with a value of over $16 billion. Glass manufacturing in the United States is one of the most energy intensive industries; in 2003, energy costs were about $1.6 billion, representing around 14% of the industry’s total production costs. Primary energy consumption of the glass industry is approximately 1% of total U.S. industrial energy use. In this Energy Guide, opportunities are presented that can help decrease these costs and increase energy efficiency.

Ernst Worrell, Christina Galitsky, Eric Masanet, and Wina Graus

This Energy Guide begins with a description of the trends, structure, and production characteristics of the glass industry in the United States. The main production processes in glass

March 2008

1 The concept of the “triple bottom line” was introduced by the World Business Council on Sustainable Development. The three aspects of the “triple bottom line” are interconnected as society depends on the economy and the economy depends on the global ecosystem, whose health represents the ultimate bottom line.

1

plants, the types of fuels used, and the major end uses of energy are then summarized. The remainder of this Energy Guide discusses opportunities for energy efficiency improvement in U.S. glass plants, focusing on energy-efficient measures and technologies that have successfully been demonstrated in individual plants in the United States or abroad.

Although new technologies are developed continuously (see e.g., Martin et al. 2000), this Energy Guide is focused on practices that are proven and currently commercially available. Some of the technologies that may hold promise for the future but are still in the research and development phase are included in Section 5.11.

This Energy Guide aims to serve as a resource for energy managers and decision-makers to help them develop efficient and effective corporate and plant energy management programs.

3. Process Description There is a large variety of glass products with varying characteristics and, hence, varying production and processing routes. While recognizing the variability, the process description will focus on the main steps that are found in virtually all glass plants. The process of manufacturing quality glass is comprised of six basic steps: (1) raw materials selection, (2) batch preparation (i.e. weighing and mixing raw materials), (3) melting and refining, (4) conditioning, (5) forming, and (6) post-processing (i.e. annealing, tempering, polishing or coating). The technologies employed in each step depend on the product manufactured. Figure 3 gives a simplified process overview of glassmaking.

Figure 3. Simplified process schematic of glass manufacture

Sand

Soda Ash

Lime

Other

Cullet

Batch Preparation

Melting and Refining

Cullet Crusher

Conditioning

Internal recycling

Forming

Internal recycling

Annealing

Internal recycling

Finishing

Glass Products

Note: The process schematic may differ for the various glass products. Figure 3 is based on typical container glass production practices. Cullet is waste or broken glass for remelting. Cullet can be plant generated or recycled from the marketplace.

Raw materials selection & Batch preparation. The glass composition determines the physical and chemical properties of the glass, and varies therefore for each product/application. Of particular interest for most applications are the chemical durability, the transmission, the softening point and the thermal expansion of the glass. Depending on their function, glassforming oxides can be grouped into network formers (for example SiO2, B2O3, P2O5), intermediate oxides (for example Al2O3, TiO2, ZrO2), and network modifiers (for example Na2O, CaO, MgO).

2

8

APPENDIX

ITEM

I

Product Title Style NO.

Reclaimed glass multi-purpose cups 1001 Quantity Set of four

Materials Reclaimed glass Total Cost

Units 1

Unit/Cost $10.00

Season

Fall/Winter 2016

Per Unit .18 .24 .26 .22 .12 .04

Rate/Hour $28.50 $29.00 $27.50 $29.00 $26.50 $24.00

Markup Total Retail

Cost $5.13 $6.96 $7.15 $6.38 $3.18 $0.96 $29.76

Units 1 1 1

Unit/Cost $0.17 $0.17 $0.05

Products Total Cost

Hours 2.2 30 8 Miles 2,085

Rate/Hour $28.25 $23.50 $7.25 PMPG 35 Shipping $961.08

Diesel 2.332 Units 11,500

Cost $10.00 $29.76 $0.39 $0.09 $40.24 372% $190

Reclaimed steel ice cubes 1002 Quantity Set of six

Materials Reclaimed Steel Total Cost

Units 1

Season

Unit/Cost $6.00

Fall/Winter 2016

Production Melting/Refining Forming Annealing Finishing Inspection TotalCost

Per Unit .18 .28 .24 .18 .04

Rate/Hour $25.00 $29.75 $22.00 $19.50 $23.00

Units 1 1 1

Unit/Cost $0.17 $0.17 $0.05

Notes Mark+Worth are sourcing 11,500 products manufactured at SCHOTT, dividing the total shipping cost by total units to get an accurate price per unit.

SCHOTT manufacturer is located in Louisville, KY heading to Mark+Worth headquarters in Los Angeles, CA.

Shipping Loading/Unload Truck Driver Hotel Diesel Expenses Products Total Cost

Hours 1.5 30 8 Miles 2,082

Rate/Hour $28.25 $23.50 $7.25 PMPG 35 Shipping $941.11

Cost $0.17 $0.17 $0.05 $0.39

Diesel 2.332 Units 6,200

Mark+Worth June 2015 Cost $6.00 $23.00 $0.39 $0.16 $29.55 Markup Total Retail

Cost $4.50 $8.33 $5.28 $3.51 $1.38 $23.00

Notes All packaging and info card will be produced by Sustainable Packaging Industries (SPI) at their Ojai, CA office but shipped from their Los Angeles, CA warehouse.

Cost $62.15 $705 $55.00 Cost $138.93 Cost $0.09

Company Date

Total Materials Production Packaging/Info Card Shipping Total Cost

Cost $6.00 $6.00

Notes All materials are sourced from Aloft Enterprises Ltd. manufacturer in Macungie, AL.

Packaging/Info Card Box Inside Shell Info Card Total Cost

Cost $0.17 $0.17 $0.05 $0.39

Notes All packaging and info card will be produced by Sustainable Packaging Industries (SPI) at their Ojai, CA office but shipped from their Los Angeles, CA warehouse.

Shipping Loading/Unload Truck Driver Hotel Diesel Expenses

Product Title Style NO.

Notes All production are being implemented at Aloft Enterprises Ltd.â&#x20AC;&#x2122;s Macungie, AL factory.

Notes All production are being implemented at SCOTTâ&#x20AC;&#x2122;s Louisville, KY factory.

Packaging/Info Card Box Inside Shell Info Card Total Cost

Mark+Worth June 2015

Total Materials Production Packaging/Info Card Shipping Total Cost

Cost $10.00 $10.00

Notes All materials are sourced from SCHOTT, glass manufacturer in Louisville, KY.

Production (Per Batch) Melting/Refining Conditioning Forming Annealing Finishing Inspection Total Cost

Company Date

Cost $42.38 $705 $55.00 Cost $138.73 Cost $0.16

Notes Mark+Worth are sourcing 6,200 products manufactured at Aloft Enterprises Ltd., dividing the total shipping cost by total units to get an accurate price per unit. Aloft Enterprises Ltd. manufacturer is located in Macungie, AL heading to Mark+Worth headquarters in Los Angeles, CA.

306% $120

Product Title Style NO.

Reclaimed steel martini shaker 1003 Quantity One

Materials Reclaimed Steel Total Cost

Units 1

Season

Unit/Cost $6.00

Fall/Winter 2016

Per Unit .18 .30 .24 .18 .04

Rate/Hour $25.00 $29.75 $22.00 $19.50 $23.00

Units 1 1 1

Unit/Cost $0.17 $0.17 $0.05

Products Total Cost

Hours 1.5 30 8 Miles 2,082

Rate/Hour $28.25 $23.50 $7.25 PMPG 35 Shipping $941.11

237% $100

Reclaimed steel flask 1004 Quantity one

Materials Reclaimed Steel Total Cost

Units 1

Season

Unit/Cost $5.00

Fall/Winter 2016

Notes All materials are sourced from Aloft Enterprises Ltd. manufacturer in Macungie, AL.

Production Melting/Refining Forming Annealing Finishing Inspection TotalCost

Per Unit .16 .32 .24 .20 .06

Rate/Hour $25.00 $29.75 $22.00 $19.50 $23.00

Packaging/Info Card Box Inside Shell Info Card Total Cost

Cost $0.17 $0.17 $0.05 $0.39

Units 1 1 1

Unit/Cost $0.17 $0.17 $0.05

Diesel 2.332 Units 6,200

Notes Mark+Worth are sourcing 6,200 products manufactured at Aloft Enterprises Ltd., dividing the total shipping cost by total units to get an accurate price per unit. Aloft Enterprises Ltd. manufacturer is located in Macungie, AL heading to Mark+Worth headquarters in Los Angeles, CA.

Shipping Loading/Unload Truck Driver Hotel Diesel Expenses Products Total Cost

Hours 1.5 30 8 Miles 2,082

Rate/Hour $28.25 $23.50 $7.25 PMPG 35 Shipping $941.11

Cost $0.17 $0.17 $0.05 $0.39

Diesel 2.332 Units 6,200

Mark+Worth June 2015 Cost $5.00 $24.08 $0.39 $0.16 $29.63 Markup Total Retail

Cost $4.00 $9.52 $5.28 $3.90 $1.38 $24.08

Notes All packaging and info card will be produced by Sustainable Packaging Industries (SPI) at their Ojai, CA office but shipped from their Los Angeles, CA warehouse.

Cost $42.38 $705 $55.00 Cost $138.73 Cost $0.16

Company Date

Total Materials Production Packaging/Info Card Shipping Total Cost

Cost $5.00 $5.00

Notes All production are being implemented at Aloft Enterprises Ltd.â&#x20AC;&#x2122;s Macungie, AL factory.

Notes All packaging and info card will be produced by Sustainable Packaging Industries (SPI) at their Ojai, CA office but shipped from their Los Angeles, CA warehouse.

Shipping Loading/Unload Truck Driver Hotel Diesel Expenses

Product Title Style NO.

Cost $6.00 $23.14 $0.39 $0.16 $29.69 Markup Total Retail

Cost $4.50 $8.93 $5.28 $3.51 $0.92 $23.14

Notes All production are being implemented at Aloft Enterprises Ltd.â&#x20AC;&#x2122;s Macungie, AL factory.

Packaging/Info Card Box Inside Shell Info Card Total Cost

Mark+Worth June 2015

Total Materials Production Packaging/Info Card Shipping Total Cost

Cost $6.00 $6.00

Notes All materials are sourced from Aloft Enterprises Ltd. manufacturer in Macungie, AL.

Production Melting/Refining Forming Annealing Finishing Inspection TotalCost

Company Date

Cost $42.38 $705 $55.00 Cost $138.73 Cost $0.16

Notes Mark+Worth are sourcing 6,200 products manufactured at Aloft Enterprises Ltd., dividing the total shipping cost by total units to get an accurate price per unit. Aloft Enterprises Ltd. manufacturer is located in Macungie, AL heading to Mark+Worth headquarters in Los Angeles, CA.

204% $90

Product Title Style NO.

Reclaimed glass wine stopper 1005 Quantity One

Materials Reclaimed glass Total Cost

Units 1

Season

Unit/Cost $4.00

Fall/Winter 2016

Cost $4.00 $4.00

Per Unit .16 .24 .22 .18 .12 .04

Rate/Hour $28.50 $29.00 $27.50 $29.00 $26.50 $24.00

Units 1 1 1

Unit/Cost $0.17 $0.17 $0.05

Products Total Cost

Hours 2.2 30 8 Miles 2,085

Rate/Hour $28.25 $23.50 $7.25 PMPG 35 Shipping $961.08

Materials Reclaimed Steel Total Cost

Units 1

Unit/Cost $10.00

Season

Fall/Winter 2016

Production Melting/Refining Forming Annealing Finishing Inspection TotalCost

Per Unit .18 .28 .24 .14 .04

Rate/Hour $25.00 $29.75 $22.00 $19.50 $23.00

Units 1 1 1

Unit/Cost $0.17 $0.17 $0.05

Notes Mark+Worth are sourcing 11,500 products manufactured at SCHOTT, dividing the total shipping cost by total units to get an accurate price per unit.

SCHOTT manufacturer is located in Louisville, KY heading to Mark+Worth headquarters in Los Angeles, CA.

Shipping Loading/Unload Truck Driver Hotel Diesel Expenses Products Total Cost

Hours 1.5 30 8 Miles 2,082

Rate/Hour $28.25 $23.50 $7.25 PMPG 35 Shipping $941.11

Cost $0.17 $0.17 $0.05 $0.39

Diesel 2.332 Units 6,200

Mark+Worth June 2015

Cost $10.00 $21.76 $0.39 $0.16 $32.31 Markup Total Retail

Cost $4.50 $8.33 $5.28 $2.73 $0.92 $21.76

Notes All packaging and info card will be produced by Sustainable Packaging Industries (SPI) at their Ojai, CA office but shipped from their Los Angeles, CA warehouse.

Cost $62.15 $705 $55.00 Cost $138.93 Cost $0.09

Company Date

Total Materials Production Packaging/Info Card Shipping Total Cost

Cost $10.00 $10.00

Notes All materials are sourced from Aloft Enterprises Ltd. manufacturer in Macungie, AL.

Packaging/Info Card Box Inside Shell Info Card Total Cost

Cost $0.17 $0.17 $0.05 $0.39

Diesel 2.332 Units 11,500

187% $90

Reclaimed steel ice bucket 1006 Quantity One

Notes All production are being implemented at Aloft Enterprises Ltd.â&#x20AC;&#x2122;s Macungie, AL factory.

Notes All packaging and info card will be produced by Sustainable Packaging Industries (SPI) at their Ojai, CA office but shipped from their Los Angeles, CA warehouse.

Shipping Loading/Unload Truck Driver Hotel Diesel Expenses

Product Title Style NO. Cost $4.00 $26.93 $0.39 $0.09 $31.41

Markup Total Retail

Cost $4.56 $6.96 $6.05 $5.22 $3.18 $0.96 $26.93

Notes All production are being implemented at SCOTTâ&#x20AC;&#x2122;s Louisville, KY factory.

Packaging/Info Card Box Inside Shell Info Card Total Cost

Mark+Worth June 2015

Total Materials Production Packaging/Info Card Shipping Total Cost

Notes All materials are sourced from SCHOTT, glass manufacturer in Louisville, KY.

Production (Per Batch) Melting/Refining Conditioning Forming Annealing Finishing Inspection Total Cost

Company Date

Cost $42.38 $705 $55.00 Cost $138.73 Cost $0.16

Notes Mark+Worth are sourcing 6,200 products manufactured at Aloft Enterprises Ltd., dividing the total shipping cost by total units to get an accurate price per unit. Aloft Enterprises Ltd. manufacturer is located in Macungie, AL heading to Mark+Worth headquarters in Los Angeles, CA.

364% $150

Product Title Style NO.

Reclaimed glass wine bottle holder 1007 Quantity One

Materials Reclaimed glass Total Cost

Units 1

Unit/Cost $12.00

Season

Fall/Winter 2016

Per Unit .18 .24 .28 .22 .12 .06

Rate/Hour $28.50 $29.00 $27.50 $29.00 $26.50 $24.00

Units 1 1 1

Unit/Cost $0.17 $0.17 $0.05

Products Total Cost

Hours 2.2 30 8 Miles 2,085

Rate/Hour $28.25 $23.50 $7.25 PMPG 35 Shipping $961.08

339% $190

Reclaimed glass coasters 1008 Quantity Set of four

Materials Reclaimed glass Total Cost

Units 1

Season

Unit/Cost $12.00

Fall/Winter 2016

Notes All materials are sourced from SCHOTT, glass manufacturer in Louisville, KY.

Production (Per Batch) Melting/Refining Conditioning Forming Annealing Finishing Inspection Total Cost

Per Unit .18 .24 .30 .22 .16 .04

Rate/Hour $28.50 $29.00 $27.50 $29.00 $26.50 $24.00

Packaging/Info Card Box Inside Shell Info Card Total Cost

Cost $0.17 $0.17 $0.05 $0.39

Units 1 1 1

Unit/Cost $0.17 $0.17 $0.05

Diesel 2.332 Units 11,500

Notes Mark+Worth are sourcing 11,500 products manufactured at SCHOTT, dividing the total shipping cost by total units to get an accurate price per unit.

SCHOTT manufacturer is located in Louisville, KY heading to Mark+Worth headquarters in Los Angeles, CA.

Shipping Loading/Unload Truck Driver Hotel Diesel Expenses Products Total Cost

Hours 2.2 30 8 Miles 2,085

Rate/Hour $28.25 $23.50 $7.25 PMPG 35 Shipping $961.08

Cost $0.17 $0.17 $0.05 $0.39

Diesel 2.332 Units 11,500

Mark+Worth June 2015

Cost $12.00 $31.92 $0.39 $0.09 $44.40 Markup Total Retail

Cost $5.13 $6.96 $8.25 $6.38 $4.24 $0.96 $31.92

Notes All packaging and info card will be produced by Sustainable Packaging Industries (SPI) at their Ojai, CA office but shipped from their Los Angeles, CA warehouse.

Cost $62.15 $705 $55.00 Cost $138.93 Cost $0.09

Company Date

Total Materials Production Packaging/Info Card Shipping Total Cost

Cost $12.00 $12.00

Notes All production are being implemented at SCOTTâ&#x20AC;&#x2122;s Louisville, KY factory.

Notes All packaging and info card will be produced by Sustainable Packaging Industries (SPI) at their Ojai, CA office but shipped from their Los Angeles, CA warehouse.

Shipping Loading/Unload Truck Driver Hotel Diesel Expenses

Product Title Style NO.

Cost $12.00 $30.79 $0.39 $0.09 $43.27 Markup Total Retail

Cost $5.13 $6.96 $7.70 $6.38 $3.18 $1.44 $30.79

Notes All production are being implemented at SCOTTâ&#x20AC;&#x2122;s Louisville, KY factory.

Packaging/Info Card Box Inside Shell Info Card Total Cost

Mark+Worth June 2015

Total Materials Production Packaging/Info Card Shipping Total Cost

Cost $12.00 $12.00

Notes All materials are sourced from SCHOTT, glass manufacturer in Louisville, KY.

Production (Per Batch) Melting/Refining Conditioning Forming Annealing Finishing Inspection Total Cost

Company Date

Cost $62.15 $705 $55.00 Cost $138.93 Cost $0.09

Notes Mark+Worth are sourcing 11,500 products manufactured at SCHOTT, dividing the total shipping cost by total units to get an accurate price per unit.

SCHOTT manufacturer is located in Louisville, KY heading to Mark+Worth headquarters in Los Angeles, CA.

328% $190

Product Title Style NO.

Reclaimed steel cufflinks 1009 Quantity Set of two

Materials Reclaimed Steel Total Cost

Units 1

Season

Unit/Cost $4.00

Fall/Winter 2016

Per Unit .14 .28 .24 .24 .04

Rate/Hour $25.00 $29.75 $22.00 $19.50 $23.00

Units 1 1 1

Unit/Cost $0.17 $0.17 $0.05

Products Total Cost

Hours 2.3 .10 Miles 5

Rate/Hour $28.25 $23.50 PMPG 35 Shipping $67.67

343% $120

Reclaimed steel tie clip 1010 Quantity One

Materials Reclaimed Steel Total Cost

Units 1

Season

Unit/Cost $3.00

Cost $3.00 $3.00

Notes All materials are sourced from Port of Mystery manufacturer in Los Angeles, CA.

Production Melting/Refining Forming Annealing Finishing Inspection TotalCost

Per Unit .14 .20 .24 .14 .04

Rate/Hour $25.00 $29.75 $22.00 $19.50 $23.00

Packaging/Info Card Box Inside Shell Info Card Total Cost

Cost $0.17 $0.17 $0.05 $0.39

Units 1 1 1

Unit/Cost $0.17 $0.17 $0.05

Diesel 2.332 Units 12,000

Notes Mark+Worth are sourcing 12,000 products manufactured at Port of Mystery, dividing the total shipping cost by total units to get an accurate price per unit. Port of Mystery manufacturer is located in Los Angeles heading to Mark+Worth headquarters in Los Angeles, CA.

Shipping Loading/Unload Truck Driver Diesel Expenses Products Total Cost

Hours 2.3 .10 Miles 5

Rate/Hour $28.25 $23.50 PMPG 35 Shipping $67.67

Cost $0.17 $0.17 $0.05 $0.39

Diesel 2.332 Units 12,000

Notes Mark+Worth are sourcing 12,000 products manufactured at Port of Mystery, dividing the total shipping cost by total units to get an accurate price per unit. Port of Mystery manufacturer is located in Los Angeles heading to Mark+Worth headquarters in Los Angeles, CA.

Company Date

Mark+Worth June 2015

Cost $3.00 $18.38 $0.39 $0.01 $21.78 Markup Total Retail

Cost $3.50 $5.95 $5.28 $2.73 $0.92 $18.38

Notes All packaging and info card will be produced by Sustainable Packaging Industries (SPI) at their Ojai, CA office but shipped from their Los Angeles, CA warehouse.

Cost $64.98 $2.35 Cost $0.34 Cost $0.01

Fall/Winter 2016

Total Materials Production Packaging/Info Card Shipping Total Cost

Notes All production are being implemented at Port of Mystery in Los Angeles, CA. factory.

Notes All packaging and info card will be produced by Sustainable Packaging Industries (SPI) at their Ojai, CA office but shipped from their Los Angeles, CA warehouse.

Shipping Loading/Unload Truck Driver Diesel Expenses

Product Title Style NO.

Cost $4.00 $22.71 $0.39 $0.01 $27.11 Markup Total Retail

Cost $3.50 $8.33 $5.28 $4.68 $0.92 $21.34

Notes All production are being implemented at Port of Mystery in Los Angeles, CA. factory.

Packaging/Info Card Box Inside Shell Info Card Total Cost

Mark+Worth June 2015

Total Materials Production Packaging/Info Card Shipping Total Cost

Cost $4.00 $4.00

Notes All materials are sourced from Port of Mystery manufacturer in Los Angeles, CA.

Production Melting/Refining Forming Annealing Finishing Inspection TotalCost

Company Date

Cost $64.98 $2.35 Cost $0.34 Cost $0.01

313% $90

Product Title Style NO.

Reclaimed steel collar bar 1011 Quantity One

Materials Reclaimed Steel Total Cost

Units 1

Season

Unit/Cost $2.00

Per Unit .12 .28 .24 .24 .04

Rate/Hour $25.00 $29.75 $22.00 $19.50 $23.00

Units 1 1 1

Unit/Cost $0.17 $0.17 $0.05

Products Total Cost

Hours 2.3 .10 Miles 5

Rate/Hour $28.25 $23.50 PMPG 35 Shipping $67.67

Product Title Style NO.

Cost $2.00 $21.29 $0.39 $0.01 $23.69 280% $90

Reclaimed steel money clip 1012 Quantity One

Materials Reclaimed Steel Total Cost

Units 1

Season

Unit/Cost $3.00

Notes All materials are sourced from Port of Mystery manufacturer in Los Angeles, CA.

Production Melting/Refining Forming Annealing Finishing Inspection TotalCost

Per Unit .14 .22 .24 .24 .04

Rate/Hour $25.00 $29.75 $22.00 $19.50 $23.00

Packaging/Info Card Box Inside Shell Info Card Total Cost

Cost $0.17 $0.17 $0.05 $0.39

Units 1 1 1

Unit/Cost $0.17 $0.17 $0.05

Diesel 2.332 Units 12,000

Notes Mark+Worth are sourcing 12,000 products manufactured at Port of Mystery, dividing the total shipping cost by total units to get an accurate price per unit. Port of Mystery manufacturer is located in Los Angeles heading to Mark+Worth headquarters in Los Angeles, CA.

Shipping Loading/Unload Truck Driver Diesel Expenses Products Total Cost

Hours 2.3 .10 Miles 5

Rate/Hour $28.25 $23.50 PMPG 35 Shipping $67.67

Cost $0.17 $0.17 $0.05 $0.39

Diesel 2.332 Units 12,000

Notes Mark+Worth are sourcing 12,000 products manufactured at Port of Mystery, dividing the total shipping cost by total units to get an accurate price per unit. Port of Mystery manufacturer is located in Los Angeles heading to Mark+Worth headquarters in Los Angeles, CA.

Company Date

Mark+Worth June 2015

Cost $3.00 $20.93 $0.39 $0.01 $24.33 Markup Total Retail

Cost $3.50 $6.55 $5.28 $4.68 $0.92 $20.93

Notes All packaging and info card will be produced by Sustainable Packaging Industries (SPI) at their Ojai, CA office but shipped from their Los Angeles, CA warehouse.

Cost $64.98 $2.35 Cost $0.34 Cost $0.01

Fall/Winter 2016

Total Materials Production Packaging/Info Card Shipping Total Cost

Cost $3.00 $3.00

Notes All production are being implemented at Port of Mystery in Los Angeles, CA. factory.

Notes All packaging and info card will be produced by Sustainable Packaging Industries (SPI) at their Ojai, CA office but shipped from their Los Angeles, CA warehouse.

Shipping Loading/Unload Truck Driver Diesel Expenses

Mark+Worth June 2015

Markup Total Retail

Cost $3.00 $8.33 $5.28 $4.68 $0.92 $21.29

Notes All production are being implemented at Port of Mystery in Los Angeles, CA. factory.

Packaging/Info Card Box Inside Shell Info Card Total Cost

Company Date

Total Materials Production Packaging/Info Card Shipping Total Cost

Cost $2.00 $2.00

Notes All materials are sourced from Port of Mystery manufacturer in Los Angeles, CA.

Production Melting/Refining Forming Annealing Finishing Inspection TotalCost

Fall/Winter 2016

Cost $64.98 $2.35 Cost $0.34 Cost $0.01

352% $110

Product Title Style NO.

Reclaimed steel pill case 1013 Quantity One

Materials Reclaimed Steel Reclaimed Steel Hinge Total Cost

Units 1 4

Season

Unit/Cost $10.00 $1.00

Per Unit .16 .38 .24 .36 .08

Rate/Hour $25.00 $29.75 $22.00 $19.50 $23.00

Cost $4.00 $11.31 $5.28 $7.02 $1.84 $29.45

Units 1 1 1

Unit/Cost $0.17 $0.17 $0.05

Products Total Cost

Hours 2.3 .10 Miles 5

Rate/Hour $28.25 $23.50 PMPG 35 Shipping $67.67

Cost $14.00 $22.71 $0.39 $0.01 $41.85 294% $165

Reclaimed glass comb 1014 Quantity One

Materials Reclaimed glass Total Cost

Units 1

Season

Unit/Cost $6.00

Fall/Winter 2016

Cost $6.00 $6.00

Notes All materials are sourced from SCHOTT, glass manufacturer in Louisville, KY.

Production (Per Batch) Melting/Refining Conditioning Forming Annealing Finishing Inspection Total Cost

Per Unit .16 .24 .30 .24 .16 .04

Rate/Hour $28.50 $29.00 $27.50 $29.00 $26.50 $24.00

Packaging/Info Card Box Inside Shell Info Card Total Cost

Cost $0.17 $0.17 $0.05 $0.39

Diesel 2.332 Units 12,000

Notes Mark+Worth are sourcing 12,000 products manufactured at Port of Mystery, dividing the total shipping cost by total units to get an accurate price per unit. Port of Mystery manufacturer is located in Los Angeles heading to Mark+Worth headquarters in Los Angeles, CA.

Units 1 1 1

Unit/Cost $0.17 $0.17 $0.05

Shipping Loading/Unload Truck Driver Hotel Diesel Expenses Products Total Cost

Hours 2.2 30 8 Miles 2,085

Rate/Hour $28.25 $23.50 $7.25 PMPG 35 Shipping $961.08

Cost $0.17 $0.17 $0.05 $0.39

Diesel 2.332 Units 11,500

Mark+Worth June 2015

Cost $6.00 $31.93 $0.39 $0.09 $38.41 Markup Total Retail

Cost $4.56 $6.96 $8.25 $6.96 $4.24 $0.96 $31.93

Notes All packaging and info card will be produced by Sustainable Packaging Industries (SPI) at their Ojai, CA office but shipped from their Los Angeles, CA warehouse.

Cost $64.98 $2.35 Cost $0.34 Cost $0.01

Company Date

Total Materials Production Packaging/Info Card Shipping Total Cost

Notes All production are being implemented at SCOTTâ&#x20AC;&#x2122;s Louisville, KY factory.

Notes All packaging and info card will be produced by Sustainable Packaging Industries (SPI) at their Ojai, CA office but shipped from their Los Angeles, CA warehouse.

Shipping Loading/Unload Truck Driver Diesel Expenses

Product Title Style NO.

Mark+Worth June 2015

Markup Total Retail

Notes All production are being implemented at Port of Mystery in Los Angeles, CA. factory.

Packaging/Info Card Box Inside Shell Info Card Total Cost

Company Date

Total Materials Production Packaging/Info Card Shipping Total Cost

Cost $10.00 $4.00 $14.00

Notes All materials are sourced from Port of Mystery manufacturer in Los Angeles, CA.

Production Melting/Refining Forming Annealing Finishing Inspection TotalCost

Fall/Winter 2016

Cost $62.15 $705 $55.00 Cost $138.93 Cost $0.09

Notes Mark+Worth are sourcing 11,500 products manufactured at SCHOTT, dividing the total shipping cost by total units to get an accurate price per unit.

SCHOTT manufacturer is located in Louisville, KY heading to Mark+Worth headquarters in Los Angeles, CA.

186% $110

Product Title Style NO.

Reclaimed steel cigar cutter 1015 Quantity One

Materials Reclaimed Steel Reclaimed Steel Screw Total Cost

Units 1 4

Season

Unit/Cost $10.00 $1.00

Cost $10.00 $4.00 $14.00

Per Unit .16 .38 .24 .36 .10

Rate/Hour $25.00 $29.75 $22.00 $19.50 $23.00

Cost $4.00 $11.31 $5.28 $7.02 $2.3 $29.91

Units 1 1 1

Unit/Cost $0.17 $0.17 $0.05

Products Total Cost

Hours 2.3 .10 Miles 5

Rate/Hour $28.25 $23.50 PMPG 35 Shipping $67.67

Cost $14.00 $29.91 $0.39 $0.01 $44.31 205% $135

Reclaimed glass paper weight 1016 Quantity One

Materials Reclaimed glass Total Cost

Units 1

Season

Unit/Cost $7.00

Fall/Winter 2016

Notes All materials are sourced from SCHOTT, glass manufacturer in Louisville, KY.

Production (Per Batch) Melting/Refining Conditioning Forming Annealing Finishing Inspection Total Cost

Per Unit .18 .24 .22 .22 .08 .04

Rate/Hour $28.50 $29.00 $27.50 $29.00 $26.50 $24.00

Packaging/Info Card Box Inside Shell Info Card Total Cost

Cost $0.17 $0.17 $0.05 $0.39

Diesel 2.332 Units 12,000

Notes Mark+Worth are sourcing 12,000 products manufactured at Port of Mystery, dividing the total shipping cost by total units to get an accurate price per unit. Port of Mystery manufacturer is located in Los Angeles heading to Mark+Worth headquarters in Los Angeles, CA.

Units 1 1 1

Unit/Cost $0.17 $0.17 $0.05

Shipping Loading/Unload Truck Driver Hotel Diesel Expenses Products Total Cost

Hours 2.2 30 8 Miles 2,085

Rate/Hour $28.25 $23.50 $7.25 PMPG 35 Shipping $961.08

Cost $0.17 $0.17 $0.05 $0.39

Diesel 2.332 Units 11,500

Mark+Worth June 2015

Cost $7.00 $27.60 $0.39 $0.09 $35.08 Markup Total Retail

Cost $5.13 $6.96 $6.05 $6.38 $2.12 $0.96 $27.60

Notes All packaging and info card will be produced by Sustainable Packaging Industries (SPI) at their Ojai, CA office but shipped from their Los Angeles, CA warehouse.

Cost $64.98 $2.35 Cost $0.34 Cost $0.01

Company Date

Total Materials Production Packaging/Info Card Shipping Total Cost

Cost $7.00 $7.00

Notes All production are being implemented at SCOTTâ&#x20AC;&#x2122;s Louisville, KY factory.

Notes All packaging and info card will be produced by Sustainable Packaging Industries (SPI) at their Ojai, CA office but shipped from their Los Angeles, CA warehouse.

Shipping Loading/Unload Truck Driver Diesel Expenses

Product Title Style NO.

Mark+Worth June 2015

Markup Total Retail

Notes All production are being implemented at Port of Mystery in Los Angeles, CA. factory.

Packaging/Info Card Box Inside Shell Info Card Total Cost

Company Date

Total Materials Production Packaging/Info Card Shipping Total Cost

Notes All materials are sourced from Port of Mystery manufacturer in Los Angeles, CA.

Production Melting/Refining Forming Annealing Finishing Inspection TotalCost

Fall/Winter 2016

Cost $62.15 $705 $55.00 Cost $138.93 Cost $0.09

Notes Mark+Worth are sourcing 11,500 products manufactured at SCHOTT, dividing the total shipping cost by total units to get an accurate price per unit.

SCHOTT manufacturer is located in Louisville, KY heading to Mark+Worth headquarters in Los Angeles, CA.

157% $90

Product Title Style NO.

Reclaimed steel shoe forms 1017 Quantity Set of two

Materials Reclaimed Steel Reclaimed Steel Cord Total Cost

Units 1 2

Season

Unit/Cost $12.00 $3.00

Fall/Winter 2016

Cost $12.00 $6.00 $18.00

Per Unit .20 .32 .24 .40 .12

Rate/Hour $25.00 $29.75 $22.00 $19.50 $23.00

Markup Total Retail

Cost $5.00 $9.52 $5.28 $7.80 $2.76 $30.36

Units 1 1 1

Unit/Cost $0.17 $0.17 $0.05

Products Total Cost

Hours 2.3 .10 Miles 5

Rate/Hour $28.25 $23.50 PMPG 35 Shipping $67.67

Cost $18.00 $30.36 $0.39 $0.01 $48.76

Materials Reclaimed glass Total Cost

331% $210

Production (Per Batch) Melting/Refining Conditioning Forming Annealing Finishing Inspection Total Cost

Units 1

Season

Unit/Cost $7.00

Fall/Winter 2016

Cost $7.00 $7.00

Per Unit .18 .24 .22 .22 .10 .04

Rate/Hour $28.50 $29.00 $27.50 $29.00 $26.50 $24.00

Diesel 2.332 Units 12,000

Notes Mark+Worth are sourcing 12,000 products manufactured at Port of Mystery, dividing the total shipping cost by total units to get an accurate price per unit. Port of Mystery manufacturer is located in Los Angeles heading to Mark+Worth headquarters in Los Angeles, CA.

Units 1 1 1

Unit/Cost $0.17 $0.17 $0.05

Shipping Loading/Unload Truck Driver Hotel Diesel Expenses Products Total Cost

Hours 2.2 30 8 Miles 2,085

Rate/Hour $28.25 $23.50 $7.25 PMPG 35 Shipping $961.08

Cost $0.17 $0.17 $0.05 $0.39

Diesel 2.332 Units 11,500

Mark+Worth June 2015

Cost $7.00 $28.13 $0.39 $0.09 $35.61 Markup Total Retail

Cost $5.13 $6.96 $6.05 $6.38 $2.65 $0.96 $28.13

Notes All packaging and info card will be produced by Sustainable Packaging Industries (SPI) at their Ojai, CA office but shipped from their Los Angeles, CA warehouse.

Cost $64.98 $2.35 Cost $0.34 Cost $0.01

Company Date

Total Materials Production Packaging/Info Card Shipping Total Cost

Notes All materials are sourced from SCHOTT, glass manufacturer in Louisville, KY.

Packaging/Info Card Box Inside Shell Info Card Total Cost

Cost $0.17 $0.17 $0.05 $0.39

Notes All packaging and info card will be produced by Sustainable Packaging Industries (SPI) at their Ojai, CA office but shipped from their Los Angeles, CA warehouse.

Shipping Loading/Unload Truck Driver Diesel Expenses

Reclaimed glass ash tray 1018 Quantity One

Notes All production are being implemented at SCOTTâ&#x20AC;&#x2122;s Louisville, KY factory.

Notes All production are being implemented at Port of Mystery in Los Angeles, CA. factory.

Packaging/Info Card Box Inside Shell Info Card Total Cost

Product Title Style NO.

Mark+Worth June 2015

Total Materials Production Packaging/Info Card Shipping Total Cost

Notes All materials are sourced from Port of Mystery manufacturer in Los Angeles, CA.

Production Melting/Refining Forming Annealing Finishing Inspection TotalCost

Company Date

Cost $62.15 $705 $55.00 Cost $138.93 Cost $0.09

Notes Mark+Worth are sourcing 11,500 products manufactured at SCHOTT, dividing the total shipping cost by total units to get an accurate price per unit.

SCHOTT manufacturer is located in Louisville, KY heading to Mark+Worth headquarters in Los Angeles, CA.

209% $110

APPENDIX

ITEM

J

APPENDIX

ITEM

K

A Time for Clarity W H Y CO M P L E T E LCA s MATTER

Climate change is one of the greatest challenges of our time.

In responding to the imperative to reduce greenhouse gases, O-I feels a strong sense of responsibility—both as a global corporate citizen and as a business serving consumer goods producers.

To this end, we recently established

glass container industries. It also facilitates

ambitious environmental sustainability goals (see page 11). As a critical first step toward

“apples-to-apples” comparisons with other consumer goods packaging materials.

achieving those goals, we undertook one of

S ET T ING A HIGHER STANDAR D

the first complete life cycle assessments in the packaging sector. It is global in scope and encompasses every stage of the packaging life cycle.

LC A MET HO DS VARY WID ELY

In the absence of a complete LCA, it is difficult to determine what is –and what is not– reflected in a carbon footprint.

The findings from our LCA helped to define our sustainability program and offer unprecedented clarity for our customers.

Because packaging LCA methods are widely inconsistent, it is difficult to accurately and objectively compare the carbon footprint of different packaging materials.

Simply put, in the absence of a complete life cycle analysis, customers and consumers sometimes see merely the tip of the proverbial iceberg when it comes to a packaging material’s true environmental profile.

By providing a global and comparative perspective, O-I’s LCA complements the life cycle assessments recently conducted by the North American and European

4 Packaging: The Complete LCA | Introduction

We expect that the complete LCA methodology used by our company and our industry will establish a higher standard of clarity for conducting environmental impact assessments in the consumer goods packaging industry. To that end, there are some basic questions customers should ask their packaging suppliers to help determine what is – and what is not – being reflected in their LCAs (see page 6).

I invite you to learn more about our LCA findings, as well as our sustainability goals, in the pages that follow. We view our commitment to sustainability as foundational to our company and the pursuit of our strategic priorities.

Many opportunities remain in the effort to improve sustainability in the packaging industry. We hope that our customers, our industry and consumers will join us as we continue working toward a more sustainable world.

In Search of a Better Method

Putting LCAs to the Test

SOME LCA DATA IS INCONSISTENT AND INCOMPLETE

H OW TO E VA L U AT E E N V I R O N M E N TA L DATA

THE CHALLENGE Consumer goods makers need reliable information about the carbon footprint of each link in their supply chain. However, environmental data available in the packaging industry is widely inconsistent due to broad variations in data measurement and the completeness of life cycle assessments.

As a result, it has been nearly impossible to compare the environmental impact of one packaging material with that of another.

THE SOLUTION To address these challenges, O-I developed a complete life cycle modeling tool that measures the environmental impact of every stage in the product life cycle (depicted at right). Each of these life cycle stages yields carbon emissions that contribute to the total carbon footprint.

With the complete LCA methodology, O-I can ensure that the impact of each stage is included in the overall carbon footprint calculation. As a result, customers and consumers get a clear picture of glass packaging.

In the packaging industry, there are a number of EXAMINING THE

factors that complicate the ability to directly compare carbon footprints across different materials. In addition to variations in LCA methodologies and completeness (described in detail on page 7), it is important to consider the following:

Full Life Cycle Raw material extraction & processing Extraction and then processing of raw materials, including recycled glass (cullet).

Cullet reduces the raw materials required to make new glass containers.

Raw material transport Transportation of raw materials and cullet to the manufacturing facility.

Ω Recycling significantly impacts the carbon footprint

Critical Questions W H E N E VA L UAT I N G L C A DATA

Ω Electrical Grid sources vary widely around the globe,

Production process Production plus combustion of fuels and energy for melting and forming glass containers.

Transport of finished goods Transportation of finished containers to the end user.

End-of-life management Refilling, recycling or disposal of glass packaging.

COMPLETE

Carbon Footprint

of a packaging material. However, some LCAs do not account for the energy savings that result from the use of recycled materials in production and the reuse of containers over time.

When comparing environmental data across packaging materials, it is crucial to ask the following questions:

significantly impacting a product’s carbon footprint.

Ω Raw Material extraction, location and processing can contribute significant carbon emissions to the overall

footprint of a product. This important step is often omitted Ω Has a complete analysis been done Validating the Complete LCA Model on all stages in the life cycle?

in LCA methodologies.

Ω Is the extraction and treatment of

Ω Transportation impact of finished containers can be

raw materials included in the analysis?

exaggerated through the use of incomplete LCAs that overlook carbon-intensive steps such as raw material extraction or processing.

Ω What standard, if any, does the life cycle analysis follow?

Ω What baseline assumptions were made for the data?

Comparing the Data

ASSUMPTIONS INCLUDE:

Energy mix Life cycle stage

This complete or cradle-to-cradle approach

Raw material transportation distances End-of-life scenarios

enables like-to-like comparisons of the carbon footprints of different products. When making these analyses, it is critical that customers and manufacturers have the information they need to assess the merits of the data they are provided.

Ω Has the analysis been validated or endorsed?

INCOMPLETE ASSESSMENTS “LCAs vary for many reasons. For example, at O-I we process materials and manufacture glass containers at one location. Some packaging industries have more extensive raw material processes that take place off-site, and these are sometimes omitted from assessments. A complete LCA should include raw material processing and every other stage of the packaging life cycle.”

Ω How does the analysis account for and define end-of-life management?

These issues, including data from O-I’s complete carbon footprint assessments, are addressed in detail in the following pages.

Key Findings | Packaging: The Complete LCA 5

6 Packaging: The Complete LCA | Methodology & Analysis

Jay Scripter Vice President of Sustainability, O-I

Measuring Carbon

Carbon Footprint Composition

MANY LCAs OFFER INCOMPLETE PICTURES

E M I S S I O N S B Y S TA G E S O F T H E L I F E C YC L E

Though the total carbon footprint of a product is made up of emissions produced at every stage of the life cycle, many life cycle analyses available today only reflect a portion of these processes.

The prevalence of incomplete assessments is not surprising given the broad disparity in carbon footprint composition across different products and packaging materials.

Many LCAs present carbon footprint data based on only the most favorable stages of a packaging material’s life cycle.

Using the complete LCA methodology, O-I ran two sets of analyses to illustrate the Gate-to-gate

This focuses only on one valueadded process or step in the supply chain. It ignores all steps before and after.

methodologies, such as cradle-to-gate and cradle-to-grave, which selectively focus on a limited part of the full life cycle.

The only approach that generates a complete picture of a product’s carbon footprint is cradle-to-cradle, which includes the recovery of post-consumer materials in closed loop production. This is the methodology O-I has used in its study.

Cradle-to-gate

An assessment of a product’s impact through production.

Finished goods transportation and disposal are not included.

Cradle-to-grave

To ensure the highest integrity of the data generated by the complete LCA model, O-I engaged the renowned supply chain and sustainability research firm AMR Research to conduct a rigorous analysis of the company’s framework.

data to compare the composition of carbon footprints of major packaging material types by life reflecting the importance of like-to-like comparisons.

R E G I O N A L C O M P O S I T I O N B Y P E R C E N TA G E

consistent and accurate. Additionally, AMR reviewed and validated all

For the purposes of this analysis, this impact is reflected in the charts below for all packaging materials.

1

4 27

29

33

EUROPE 2

Cradle-to-cradle

Addresses all inputs and outputs for each life cycle stage, including the impact of reuse and recycling.

Raw material transport Production process

Glass

POLYETHYLENE TEREPHTHALATE

Transport of finished goods 5

15 32

5

46 52 66 75

data sources and equations in the model.

LCA Approaches | Packaging: The Complete LCA 7

PET

Aluminum

NORTH AMERICA International Organization for Standardization (ISO) 14040: 2006 Environmental Management

65

1

Raw material extraction & processing Includes the impact of recycling

ISO DEFINITION OF LIFE CYCLE “LCA considers the entire life cycle of a product, from raw material extraction and acquisition, through energy and material production and manufacturing, to use and end of life treatment and final disposal.”

4

66 67

AMR tested the model using five different sets of published data and compared it with current best practices. They found the model to be

The use of recycled glass directly reduces the energy needed to extract and process raw materials.

Carbon Footprint Breakdown

Covers all stages from materials extraction through manufacture, use and disposal, but does not account for the potential impact of reuse or recycling.

VA LI DATO N O F O -I’ s

Complete LCA Model

packaging materials. The first analysis, depicted in the charts below, used publicly available cycle stage. The findings confirm that different materials are more carbon-intensive at different stages,

COMMON APPROACHES TO THE LCA

The graphics on the right depict commonly used LCA

importance of looking at the full life cycle when comparing carbon footprint data across different

8 Packaging: The Complete LCA | Carbon Footprint Composition

2 2

Comparing Carbon Footprints

The Full Benefits of Glass

PA C K A G I N G M AT E R I A L S A R O U N D T H E W O R L D

SOCIAL, ENVIRONMENTAL AND TECHNOLOGICAL

The second analysis calculated the complete carbon footprint of the most commonly used carbonated beverage containers in O-I’s four global operational regions. To ensure accuracy and clarity, the analyses drew on actual manufacturing data from O-I for the glass figures and publicly available data for the other materials. The assumptions associated with each analysis are listed with the relevant charts below.

N O RT H

L ATIN

America

REFILLABLE Glass

an average of 30 times, have a greatly reduced carbon footprint. In Latin America and Western Europe, refillables represent over 60 and 35 percent of the market, respectively, at an average carbon footprint in both regions of 0.006 kgCO2e per container. Due to the small size of this footprint, it is not shown below.

WES TERN

America

Bottles

Refillable bottles, which can be used

While a life cycle assessment establishes an important quantitative benchmark, the full sustainable benefits of glass packaging include additional environmental, health, social and economic dimensions that reach above and beyond what can be measured in an LCA. These include health and safety, recycling, reuse and resource efficiency.

Health & Safety

Glass recycling and reuse contribute significantly

ASIA

Europe

Pacific

to reducing glass packaging’s carbon footprint. The use of recycled glass or cullet (pictured above) in batch

0.422

0.425

materials has the following beneficial impacts:

0.401

0.400

Ω Every 1 kg of cullet used replaces 1.2 kg of virgin raw materials that would otherwise need to be extracted.

0.249

0.250

Ω Every 10 percent of recycled glass or cullet used in production results in an approximate 5 percent reduction in carbon emissions and energy savings of about 3 percent.

0.214

0.225 0.200 0.171

0.1 75

0.153

0.152

R E SOU R CE E FFI CI E NCY

0 .1 5 0 0.117

0.1 2 5

0.117

0.124

Glass is resource efficient, and can be reused in

0.122 0.110

0.1 0 0 0.075

Packaging’s most important function

kg CO2 --------------

Container

Glass

Aluminum

PET

Glass

Aluminum

PET

Glass

Aluminum

PET

Glass

Aluminum

PET

is product preservation—and no other packaging material does this better than glass.

For example:

ASSUMPTIONS

Ω

Typical 355ml container

P O S T- C O N S U M E R C O N T E N T Glass Aluminum PET

25%

Ω

43%

2%

United States (Michigan area) electric grid typical of North America

Ω

R E CYCLI NG & R E U SE

Ω

Typical 355ml container

P OST- CO N S UM E R CO N T E N T Glass Aluminum PET

32%

Ω

60%

2%

Brazil (Rio Grande do Sul area) electric grid typical of Latin America

Ω

Typical 355ml container

P OST- CON SUMER CON TEN T Glass Aluminum PET

47%

Ω

52%

2%

Italy (Puglia area) electric grid typical of Western Europe

Ω

Typical 355ml container

POST-CONSUMER CONTENT Glass Aluminum PET

25%

57%

2%

Ω Australia (New South Wales area) electric grid typical of Asia Pacific

Ω Glass containers protect food and beverage products from penetration by contaminants.

Ω Glass containers are easily and repeatedly resealable and keep products fresher for longer.

its original form more than other packaging materials.

Additionally, several initiatives currently underway in the glass industry will further increase the efficiency of glass packaging, including: Ω Efforts to improve recovery and recycling of glass containers help eliminate the diversion of glass to landfill, leading to a decrease in energy use and global warming potential. Ω Lightweighting glass containers reduces raw material usage, emissions, energy used and overall weight.

355ml: Size of average beer bottle

Carbon Footprint Comparison | Packaging: The Complete LCA 9

10 Packaging: The Complete LCA | Benefits

Goals... since all are using 2007 as a baseline and 2017 as the deadline, can we do some kind of treatment to address this for all or footnote in some way?

nd 2017 as the deadddress this for all or

The Path Forward O - I ’ S S U STA I N A B I L I T Y G OA L S

Building on knowledge gained by its complete LCA, O-I has launched a long-range sustainability portfolio aimed at making continuous improvements in four key areas. The portfolio is structured to prioritize efforts and streamline decision making. It consists of multiple projects aimed at achieving specific, measurable goals on a 10-year basis, using 2007 as the baseline. Some of the key initiatives are highlighted below.

Owens-Illinois, Inc. (O-I): Millions of times a day, O-I glass containers

deliver many of the world’s best-known consumer products to people all around the world. With the leading position in Europe, North America, Asia Pacific and Latin America, O-I manufactures consumer-preferred,

O-I’s Key Program Areas & Goals

100 percent recyclable glass containers that enable superior taste, purity, visual appeal and value benefits for our customers’ products. Established in 1903, the company employs more than 22,000 people with 78 plants in 21 countries. In 2009, net sales were $7.1 billion.

FOR MORE INFORMATION, VISIT

ENERGY Reduction

EMISSIONS Reduction

Take measures to improve energy efficiency and reduce energy use to ultimately decrease environmental impact and reduce costs.

DESCRIPTION: Reduce overall

GOALS

DESCRIPTION:

GOAL: Cut energy consumption by 50 percent.

CULLET Usage

WORKPLACE Safety

DESCRIPTION:

Develop a strategy to continue and expand O-I’s role as the largest buyer of recycled glass in the world.

DE S CRI P T I ON:

emissions to minimize operational costs and environmental impact in support of global carbon reduction targets.

Reinforce workplace safety as an integral company value and ensure that each employee’s safety is a top priority.

GOAL: Reduce total CO2 equivalent emissions by 65 percent.

GOAL: Achieve a recycled content of 60 percent in containers globally.

GOAL:

Achieve zero accidents.

O - I ’ S G OA L S A R E S E T O N A 1 0 -Y E A R B A S I S , U S I N G 2 0 07 A S T H E B A S E L I N E .

O-I and Sustainability | Packaging: The Complete LCA 11

www.o-i.com

United States Environmental Protection Agency

Solid Waste and Emergency Response

Policy, Planning and Evaluation (PM-221)

December 1992

Markets for Recovered Glass

Summary The technology for recycling container glass is relatively simple and well established. Mechanisms for recovering glass from the municipal solid waste stream exist in many areas and include beverage container deposits, buyâ&#x20AC;&#x201C;back or drop-off centers, and curbside collection programs. Deposit programs focus on beer and soft drink containers, and, in some states, include wine coolers, wine, liquor, and/or juice containers. Estimates prepared for EPA suggest that beer and soft drink containers accounted for the majority of cullet recovered from municipal solid waste in 1988. Other programs, which are expanding, focus on a broader range of glass containers.

Unfortunately, no comprehensive data exist to document the total quantity of postconsumer cullet that is collected. Finally, the little information available indicates that post-consumer non-container glass is rarely recycled because of the absence of collection mechanisms and the technological difficulties in reusing non-container glass and in separating other materials from the glass.

16

III. Factors Influencing the Cullet Markets

Nonprice Motivations Affect Consumers’

Decisions to Recycle Containers

We have divided our consideration of issues affecting the cullet market into those that affect the supply of recovered cullet and those that affect demand for recovered cullet. For each side of the market, we will present issues that shape the supply of or demand for cullet, discuss trends in the industry that will influence the markets in the future, and present conclusions, which include our assessment of the ramifications of our findings for government policies.

The existence of drop-off centers where consumers, in effect, donate their containers by dropping them off without getting money back shows that the desire to “do good” is an important motivation to recycle glass. The economic motivation for consumers is weakened by the low price of cullet relative to the cost incurred in supplying cullet and the low cost of alternatives to recycling (e.g., land disposal). Currently, the scrap value of a typical glass beverage bottle is almost a penny and a half (assuming $50 per ton and an average of two bottles per pound).

In areas that rely on drop-off or buy–back centers to collect used glass containers, the low price paid does not provide a strong incentive to consumers to return their containers. One study estimated that the return on a consumer’s time spent in 17 preparing bottles for return was about 4 cents per minute, or $2.40 per hour.

Consumers may be more influenced by the perception that donating used glass is an inexpensive way to contribute to a charity, or that recycling glass is an easy way to help the environment.

Supply of Cullet The supply side of a market reflects the costs of producing a given output.

For the cullet market, the supply function can be thought of as the relationship between the price of cullet deliveries to glass manufacturers and the amount of cullet that suppliers are willing to deliver for that price. In most markets, suppliers are willing to provide some small quantity even at low prices. However, suppliers generally respond to higher prices by increasing the quantity they supply.

Monetary return does play some part in consumer willingness to recycle glass. Our rough analysis of 1988 data described in Chapter II suggests that the nine states with deposit laws were recycling more than half the total glass beer and soft drink containers recycled in the United States, a significantly larger share per state than contributed by non-deposit states. To achieve this response, however, the deposit states have had to offer returns on bottles that are far above the market scrap value of the bottle and we have not considered the cost associated with deposit laws.

The major factor affecting the supply of cullet is the increasing attention being paid to recovery by consumers; the federal, state, and local governments; the media; and industry. Escalating landfilling costs will continue to lead to greater efforts to provide convenient recovery opportunities for glass, increasing the supply of cullet. Expanded recovery through curbside and drop-off programs will also increase the supply of container cullet not tied to deposit laws. We expect the quantity of cullet supplied to increase over the next few years.

The experience with price and nonprice motivations to recycle has been limited to a certain range of prices. In deposit states, a deposit of 5 to 10 cents stimulates the quantity of glass containers recycled. Elsewhere, the return to consumers is lower, despite the efforts of some large manufacturers of glass containers to subsidize container returns. For instance, California’s Glass Recycling Corporation, formed by container manufacturers in the state, subsidizes container returns in order to prop container prices above a state– 18 mandated minimum.

Factors Influencing Supply The major factors we have identified are summarized below. The text that follows describes these issues in more detail.

■

Nonprice motivations for supplying cullet are important, particularly because the historical market price of cullet is low on a per bottle basis.

Finally, we have not considered the entire benefit to society of recycling.

Land disposal may be underpriced implying that recycling yields significant benefits beyond those currently recognized.

The influence of public attention to recycling, an expansion of convenient recycling opportunities, and the prospect of higher landfilling costs should increase the supply of cullet.

■

Darlene Snow and Ballina Edwards, Glass Recycling: Opportunities and

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Constraints, August 1985.

Regional differences in the supply of cullet exist because recycling is concentrated in certain regions, and because the cost of transportation limits the effective range of cullet sales.

The scrap price subsidy has been paid to avoid a processing fee which could be levied against all glass containers sold. The processing fee, established by AB 2020, is designed to ensure that recyclers earn enough to cover their costs plus a reasonable profit.

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Scope of the study

4.5.3.3 Intermediate products from external supply Semi-finished products (continuously cast products at the steelmaking stage) are sometimes imported to the sites from external supply. Where the site is known (this is generally the case), the two sites are linked within the GaBi model so that the upstream data of the intermediate product are connected to the downstream processing site. Where the source of semi-finished products is not known, the global average value for the products is used.

Coke, graded sinter, pellet, direct reduced iron and hot metal can also be sourced from external supply. Since these can be substantial quantities, they were assigned the global study LCI average data, including appropriate transport, as they are all globally traded.

4.5.4 Emissions to air, water and soil

Life CyCLe assessment methodoLogy report Life CyCLe assessment methodoLogy report

World Steel Association

Rue Colonel Bourg 120 B-1140 Brussels Belgium

T: +32 2 702 8900 F: +32 2 702 8899 E: steel@worldsteel.org

C413 Office Building Beijing Lufthansa Center 50 Liangmaqiao Road Chaoyang District Beijing 100125 China

T: +86 10 6464 6733 F: +86 10 6464 6744 E: china@worldsteel.org worldsteel.org

A list of all known air and water emissions was defined and drawn up for each process stage and included in the site questionnaires for data collection. Because techniques of measurement are more advanced for some sites than others, the total list of flows used in the questionnaire is more extensive than the typical emission monitoring data collected routinely at any one site.

However, the long list enables all sites to provide their specific emissions data.

The availability of data was sometimes limited from certain sites and emission values were unknown. There are a number of emission flows for both air and water which are known to occur from certain steelmaking processes and these have been defined as 'accounted emissions' and are listed below.

Where sites are not able to provide the data for such flows, and to avoid artificially reducing the average values for these flows (as the value for sites that do not know the data is zero), average data are assigned to the sites with 'missing data'. This average value is calculated based on those sites that have submitted data for each of the accounted flows below and is based on a global average value, where a minimum of three sites have provided data. Carbon dioxide has been provided by all sites. For the other flows, the sites not providing data for the accounted emissions ranges from 5% to 85%.

ISBN 978-2-930069-66-1

Accounted emission

Air

Water

Flows

Greenhouse gases

CO2, CH4, N2O

Acidification gases

NOX, SOX as SO2, HCl, H2S

Organic emissions

Dioxins VOCs (excluding methane)

Metals

Cd, Cr, Pb, Zn

Others

CO, Particulates (Total)

Metals

Cr, Fe, Zn, Pb, Ni, Cd

Others

N (except ammonia), P compounds, Ammonia, COD, Suspended matter

Table 3: List of accounted air and water emissions

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worldsteel LCA Methodology Report Production process Coke oven

Main co-products

Scope of the study

Allocation method

CO gas

System expansion

Coke Benzene Tar Toluene Xylene Sulphur

System expansion

Blast furnace

Blast furnace gas Hot metal Slag

System expansion

Basic oxygen furnace (BOF)

BOF gas Crude steel Slag

System expansion

EAF

Crude steel Slag

System expansion

Table 4: Steelmaking co-products

4.6.1.1 The system expansion method This is the preferred method of the steel industry as it provides the most consistent solution to avoid many of the problems of other approaches. For example, allocation rules are avoided by attributing all system inputs/outputs to the main system function (to produce hot metal) but credits are given to the production of process gases and slags because their production replaces alternative production of similar functional products.

To some extent, this method can be seen as an "open loop recycling procedure". Where process gases are consumed in modules within the system, the burdens of alternative products are then added to the system, offsetting the credits. Where all generated gases are consumed on-site, values of inputs/outputs and emissions equate to the real site values.

The method is cited in section 4.3.4 of ISO 14044:2006. It is described as one of the preferred methods since it 'avoids' allocation. The challenge, however, is in the choice and functional equivalence of the alternative systems selected and great care has been taken to ensure that those selected are consistent with actual practice. For example, blast furnace gas is a fuel with no equivalent means of generation. It is used as a fuel for upstream and downstream processes and can be exported to systems external to the steel production system. Therefore, an assumption has to be made regarding the fuels potentially replaced. On average, 4.8 MJ of blast furnace gas is generated per kg of hot metal, excluding the small quantities that are flared without energy recovery (see section 4.5.7).

The selection of alternative fuels was the subject of sensitivity analyses described in the original study. The decision was taken to assume that energetic gases generated in steel production such as blast furnace gas, coke oven gas and BOF gas, replace the energy needed to produce the equivalent thermal energy or the national grid electricity applicable to the respective country.

For example, if the steel is produced in Japan and the process gases are exported to replace electricity, the Japanese electricity grid mix will be used.

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In both these cases a conservative approach was taken as these default values of aggregate/ roadstone and natural gas give the lowest credit to the system. All sites provided information on the destination of their slags and process gases. For any recovered gases or slags not accounted for by the sites, the default scenario applies.

In conclusion, the system expansion method was selected for multi-functional systems since it closely represents the real interactions of steel production routes with the environment and avoids unsound theoretical scenarios. Most importantly, it does not result in favourable LCI results for the steel industry.

The construction of the system expansion method in the worldsteel LCI model provides flexibility to analyse and, if necessary, switch off each system expansion scenario and/or replace it with alternative functional systems. This facility allows sensitivity analysis of different system expansion scenarios and will facilitate studies into alternative uses of wastes that may in future be treated to replace functionally similar products.

4.6.2 Capital goods The aspect of capital goods was addressed in the previous study and it was decided not to include it. Capital goods have not been included in the present study.

4.6.3 The end-of-life phase Steel is completely recyclable. Therefore, it is important to consider recycling in LCA studies involving steel, namely the steel scrap that is recycled from a final product at the end of its life.

In addition, steel is a vital input to the steelmaking process, and this input of steel scrap should also be considered in LCA studies.

The worldsteel methodology considers both of these factors. There is a growing market for steel products and there are no changes to the inherent properties of the steel when it is recycled and steel can be recycled over and over again.

Due to the maturity of the steel recycling system that has developed across the world, steelmakers and scrap merchants have harmonised the use of the steel scrap for relevant products to minimise the costs in treatment of scrap for use in the new steel products. With selection of various scrap grades, some products are recycled into lower quality products, in the same way that some scrap steel is recycled into higher quality products such as aerospace steels.

Should the need arise, further segregation of steel from contaminants and processing could be carried out.

A closed loop approach can therefore be applied for the recycling of steel; this follows ISO 14044:2006 section 4.3.4.3, which describes the allocation procedures for closed loop material recycling. The Declaration by the Metals Industry on Recycling Principles13 provides further interpretation of recycling as described in ISO 14044:2006.

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Hybrid life cycle assessment of steel production with carbon capture and storage

Hyun Doc Choi

                                                                                                                                                                                                                   

Master in Industrial Ecology Submission date: June 2013 Supervisor: Anders Hammer Strømman, EPT

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Norwegian University of Science and Technology Department of Energy and Process Engineering

  



                                                                                             

                     

                 

 

 

                                                                              

 

                                              