Contract Manufacturing + Packaging

T H E O F F I C I A L P U B L I C AT I O N O F T H E C O N T R A C T PA C K A G I N G A S S O C I AT I O N

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'CoPacking OnDemand' Netherlands co-packer Budelpack engineers a software system and packaging line to pack and label dry meal-kit ingredients on-demand.

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Cost of capital, executional risk

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OEM supplier survey results

10 CPA ENGAGE 2022 recap

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Contents TM

VOLUME 18, ISSUE 1

MARCH/APRIL 2022

EDITORIAL

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Natalie Craig EDITOR-IN-CHIEF

ncraig@pmmimediagroup.com

ART Dave Bacho CREATIVE DIRECTOR Jonathan Fleming ART DIRECTOR

AUDIENCE & TECHNOLOGY Elizabeth Kachoris SENIOR DIRECTOR, DIGITAL AND DATA Jen Krepelka DIRECTOR, WEBSITES & UX/UI Lauren Sanz SENIOR DATA ANALYST

ADVERTISING Wendy Sawtell VICE PRESIDENT, SALES • wsawtell@pmmimediagroup.com Ron Levinson, SALES MANAGER • rlevinson@contractpackagingmag.com Lara Krieger PRODUCTION MANAGER • lkrieger@pmmimediagroup.com Kelly Greeby SENIOR DIRECTOR, CLIENT SUCCESS & MEDIA OPERATIONS

6 Custom ‘Co-Packing On-Demand’ Line Launched for Meal-Kit Company

Alicia Pettigrew SENIOR MANAGER, PRODUCT & REVENUE STRATEGY

Netherlands food co-packer Budelpack engineers a new packaging line driven by a custom software system that delivers pouched meal-kit ingredients on-demand, with no pause in production.

PMMI MEDIA GROUP Joseph Angel PRESIDENT, PUBLISHER David Newcorn EXECUTIVE VICE PRESIDENT Sharon Taylor DIRECTOR, MARKETING Amber Miller SENIOR MARKETING MANAGER Bea Greany BRAND OPERATIONS MANAGER Janet Fabiano FINANCIAL SERVICES MANAGER Lloyd Ferguson FOUNDING PARTNER

10 CPA’s Annual Meeting,

ENGAGE, Sets the Stage for 2022

Event draws record attendance and offers discussions on the latest industry trends, including labor shortages, robotics, and cybersecurity.

PMMI MEDIA GROUP 401 N. Michigan Ave., Suite 1700, Chicago, IL 60611 PHONE 312/222-1010, FAX 312/222-1310 • CIRCULATION FAX 312/222-1310 E-MAIL info@packworld.com • WEB www.packworld.com PMMI The Association for Packaging and Processing Technologies 12930 Woodgate Dr., Suite 200, Herndon, VA 20170 PHONE 571/612-3200 • FAX 703/243-8556 • WEB www.pmmi.org

CONTRACT Manufacturing + Packaging magazine is published for the Contract Packaging Association.

For information on association membership, contact Paige Jarvi, 571/287-6818, pjarvi@contractpackaging.org, or visit www.contractpackaging.org.

EDITORIAL CONTACT Have a question or an idea for an article? Contact Natalie Craig, Editor-in-Chief, 312/205-7917. CONTRACT Manufacturing + Packaging magazine prefers to receive press releases by e-mail. Send to ncraig@pmmimediagroup.com.

DEPARTMENTS

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Forefront CPA President’s Letter Brand Owner Insight Industry News CPA News Products Ad Index

PUBLICATIONS MAIL AGREEMENT NO. 40064408

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Forefront

Introducing CONTRACT Manufacturing + Packaging magazine NATALIE CRAIG, Editor Hello, contract packagers and manufacturers!

My name is Natalie Craig, and I am the new editor of CONTRACT Manufacturing + Packaging magazine. I spent the last six years reporting on business issues and technologies for your suppliers at OEM Magazine. And now, I am thrilled to have the opportunity to cover your side of the business.

I just returned from The Contract Packaging Association’s ENGAGE event, where more than 150 contract manufacturers and packagers (CM&Ps) met to connect

and discuss how to overcome the challenges this industry is currently facing. It was energizing to listen to your ideas and goals for the year ahead and to also share my vision for this magazine with you.

If you’re an avid reader, you may notice this magazine looks a little different than previous issues, and it will continue to evolve. You can expect to read articles that align with the very business issues you’re facing, like cybersecurity, labor shortages, and customer relationship management.

This content will also be accessible via short videos and informative podcasts.

I look forward to creating a space where you can learn about new solutions to industry challenges, find ways to connect with your peers and new partners, and

hopefully, see coverage of your company within these pages someday soon.

Before we dive into the rest of the magazine, I want to thank Senior Editor of Packaging World magazine and Contract Packaging’s former editor, Anne Marie Mohan, for creating such an informative and engaged space for me to step into. Her coverage of CM&Ps isn’t going anywhere, though.

Feel free to drop me a line at the email below if you have story ideas or suggestions. I also invite you to introduce me to your company through this quick questionnaire: oemgo.to/CPA. CM+P

ncraig@pmmimediagroup.com

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President’s Letter

A Strong Start in 2022 ROB REINDERS, CPA President We’ve come a long way since March 2020 when the world seemed to come to a standstill and continued that way through most of 2021. Late in 2021, however, we completed three in-person events, and the results were incredibly positive. It was refreshing to return to live events and gather once again with our industry peers. The CPA also gained 38 new members in 2021.

For 2022, we have no plans to slow down—in fact, just the opposite. We have five in-person events happening in 2022, which were kicked off by the event of the year for the contract manufacturing and packaging (CM&P) industry: CPA’s ENGAGE – The Contract Packaging and Manufacturing Experience, which took place March 1-3, in Clearwater, Fla. ENGAGE participants comprised some of the world’s most innovative and successful CM&Ps, brands, and suppliers. Professionals in attendance included owners, CEOs, presidents, and senior managers. The in-person meeting gave more than 150 attendees the opportunity to connect with existing partners and network with potential prospects.

Among the happenings at ENGAGE were dynamic and industry-relevant speakers who delivered insights on topics important to CM&Ps, along with panel discussions and perspectives from CPGs, CM&Ps, and automation suppliers. The event also featured tabletop exhibits with the latest technology from OEM suppliers as well as numerous networking opportunities with existing partners, clients, and new partners.

On the heels of our annual event, we traveled to two major trade shows in March. Our first stop was the Natural Products Expo West in early March in Anaheim, Calif. The show was back after two years and drew a very large audience. One week later, we traveled to PACK EXPO East in Philadelphia.

And later this fall, you can connect with us at Natural Products Expo East, from Sept. 28-Oct. 1, in Philadelphia, and at PACK EXPO International, from Oct. 23-26, in Chicago. These events give us a chance to promote the industry and our members. No matter the show, our CPA Sourcing Center is always a popular location.

And now, I want to highlight the CPA’s growing Educational Programs. The association is a proud partner of The Packaging School, Nulogy University, and PMMI U.

If you’re looking for a refresher on the foundations of packaging, The Packaging School offers just that. Composed of 12 online courses, the Professional Certificate of Packaging teaches the materials, processes, and influences shaping the advancement of the packaging industry. CPA members receive a 10% discount on the total cost of all courses.

If you’re more interested in remote shop floor best practices and technology training, CPA members get complimentary access to Nulogy University, an online education platform that provides users with the training and education to understand the CM&P industries.

Lastly, CPA members have the benefit of taking advantage of PMMI U’s TechEd 365 courses at the PMMI member rate. PMMI’s online technical training courses provide consistent and repeatable content that is convenient and affordable, tailored to the packaging and processing industries. If you aren’t a member already, join today and take advantage of these great educational benefits.

Another highlight and benefit to CPA membership is our recently added CPA and the National Association of Manufacturers (NAM) Cyber Insurance Coverage. If you’ve been listening to the news, you’ve heard of the severe impacts one cyberattack can have on your business as well as your customer. Eighty-six percent of cyberattacks against manufacturers are deliberate, targeted attacks.

As a CPA member, you are eligible for a free cyber risk assessment with no obligation. Be proactive and learn where weaknesses lie in your cyber defense. Learn how to be protected from uninsured cyberattacks, the direct impact on your clients, and the liability of a compromised system.

The CPA is now providing members with a significantly reduced rate on access to a cyber insurance program. In collaboration with NAM, CPA can offer this exclusive cyber insurance and risk management product designed specifically for our industry segment and their needs.

As always, it is and has been a privilege to be leading such a prestigious and dynamic association. As both president of the board and a long-term member, I see a very bright future filled with huge opportunities for the CPA. CM+P

Rob Reinders is President of Performance Packaging of Nevada. pplv.co/

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Brand Owner Insight

The Cost of Capital and Executional Risk and Exclusivity ROBBY MARTIN Contributing Editor I have recently been on a journey to implement a new line of products for our company, and it has involved stretching the capabilities of one of our contract manufacturing/contract packaging (CM&P) partners in many ways. Trying to bring new products to a successful operational startup in a CM&P environment can prove quite challenging. Solving these challenges often involves combining product and ingredient expertise, which our company brings to the table, with processing and equipment expertise, something our CM&P partner brings to the table.

But what do you do when your expertise and the partner’s expertise combined still leave you short on an acceptable way to accomplish the desired result for the new products? Who solves the problems, and who pays for the solution? I believe the answer lies in a combination of topics we’ve discussed in this column previously: Risk and Exclusivity.

While any joint endeavor involves some building blocks like transparency, honesty, and trust, among others, the most complex pursuits require an added level of commitment to manage risks appropriately. As we have developed solutions to our new product pursuits over the years, we have found that working through solutions together with our partners always provides the best fruit. I often find our mutual trust and relationship status help us pursue things that neither my team nor my partner’s team are entirely sure we have a solution for. The only way we can pursue these ideas is that we trust each other to work out questions ahead of time

related to who carries the risk. We then keep that alignment as we go through the development and launch process.

The risk of success, or failure, may or may not be laid out in a supply contract, development agreement, or other instrument or document. Regardless, both parties are usually still carrying a lot of risk.

The CM&P partner has their reputation risk to think about. The brand owner has the brand risk to think about. Together, they share the need to move the business forward.

To solve the risk-responsibility dilemma, we could just write a spec for a target finished product, provide funding for the development work, and tell our CM&P partner, “Call us when you have something to show us.” But that seems to fall short of our collaborative relationship goals and expectations. Instead, what if we discuss the risks at every step along the way? What if the CM&P partner and my company discuss the pros and cons as we go? What if we have a common view of the points of failure we may encounter? Then, when surprises arise, they are surprises for both of us.

You may be wondering, who pays for all of this? We’ve discussed who pays for routine development activities before (see pwgo.to/7509). More challenging pursuits may get treated differently. Following are are two examples I have experienced.

#1: Packaging changeparts Me: “We need these changeparts to do a different package. Is that something you can support us doing? Will you be able to incorporate the changeovers into your run schedule for our products?”

Partner: “We can absorb the changes based on how we schedule your items to run. It won’t be perfect, but we can handle it in the initial stages while we see how

the product does in the market.”

Me: “Will you want to offer this packaging feature to other customers? Are you willing to share in changeparts cost?”

Partner: “We only plan to do this for you; we don’t want to further complicate our operation by offering this package configuration to other customers. So, we’re not interested in paying for part of the cost.”

In this scenario, since we’ve agreed that my company will bear the total cost for the parts, and that those parts will be exclusive to only my products/packages.

#2: A piece of in-process testing equipment Me: “We need to get this piece of analytical equipment to support a food safety requirement of our company.” (Note: The requirement is more conservative than purely regulatory driven.)

Partner: “Our external food safety authority is not requiring this type of analysis at this time. However, we want to participate in the cost as part of our commitment to food safety and to our relationship with your company.”

In this scenario, even though the equipment being purchased is only for our products, the CM&P partner is participating as a good faith gesture and because they know the requirement for them could expand in the future.

The point here is to encourage all of us to see the invested time of alignment and agreement, especially when it comes to risks involved in new endeavors, to be well worth the investment. After all, we need our CM&CP partners, and they need us, or we will need each other again sometime down the road. CM+P Robby Martin is Engineering Specialist for Bush Brothers & Company.

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Industry News

OEM Supplier Survey Reveals CM&P Needs To better understand OEM supplier relationships and habits with contract manufacturers/packagers (CM&Ps), PMMI, the Association for Packaging and Processing Technologies, conducted a survey of its OEM members.

More than a third of OEM respondents (37%) said that 10% to 25% of their sales come from CM&P customers. The survey results provide insight into the state of the CM&P industry, as well as how OEMs are adapting to meet the needs of CM&Ps.

Industries served The most popular markets that respondents sell machinery to CM&Ps for are: « 53% - Nutraceuticals and supplements « 41% - Baked goods « 41% - Confectionery However, the largest markets for selling machinery to CM&P are:

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« 17% - Beverages (including alcohol) « 13% - Medical devices « 11% - Protein

Equipment needs When asked about what automation or technology needs CM&Ps are asking for, open-ended comments indicated that the most popular solutions are integrated lines and a single piece of equipment.

The most popular machinery to sell to CM&Ps includes: « 34% - Conveying, feeding, and handling equipment « 32% - Bagging, pouching, and wrapping equipment « 31% - Cartoning, multipacking, and case equipment When it comes to equipment capabilities and features, OEMs noted some specific demands and needs that CM&Ps are requesting when they purchase machines:

« Quick changeovers « Predictive maintenance « Versatility for different package formats « Lines need to be built around new labeling requirements « Easy-to-operate machinery « Turnkey systems for secondary packaging « Sophisticated vision systems and robotics OEMs ranked the most important machinery features among their CM&P partners as: « 79% - Flexibility « 65% - Speed of delivery « 36% - Portability « 20% - Adherence to CPG specs « 14% - Lease option For more in-depth findings and to read verbatim responses of OEMs, download the survey results at: oemgo.to/cpqs22

3/17/22 9:48 AM

Budelpack

Custom ‘Co-Packing On-Demand’ Line Launched for Meal-Kit Company Netherlands food co-packer Budelpack engineers a new packaging line driven by a custom software system that delivers pouched meal kit ingredients on-demand, with no pause in production ANNE MARIE MOHAN, Senior Editor, Packaging World

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riven by consumers’ desire for fresh, convenient meal options and accelerated by the home-cooking trend sparked by the pandemic, the meal-kit market in the U.S. shows a healthy CAGR of 11.25% through 2025. That’s according to TechNavio, which adds that the greatest growth in the meal-kit market will come from the U.S., at 54%. However, meal kits are not just a U.S. phenomenon. According to ReportLinker, the global meal-kit services market is forecast to reach $17.8 billion by 2027.

Meal kits, in a nutshell, comprise a kit of pre-measured food ingredients—usually a mix of shelf-stable and fresh, depending on the meal—and an easy-to follow recipe that allows the consumer to prepare the meal at home. They typically operate on a direct-to-consumer subscription basis. For a large meal-kit provider, such as HelloFresh, one of the world’s leading meal-kit companies, the number of recipe options it offers its subscribers each week can total more than 50. For these companies, stocking a large range of shelf-stable items packaged in different portion sizes is viable.

But what about a smaller, perhaps more specialized meal-kit company offering a limited number of meal options each week? In their case, unpredictability in terms of which ingredients may be needed week to week is a constant. By ordering large quantities of pre-packaged dry product, these companies run the risk of having lower working capital on-hand and obsolete products.

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s Budelpack fills a range of rice and grain products in different weights and sizes on its Co-Packing On-Demand line.

In the Netherlands, co-packer Budelpack has devised a unique solution made up of custom software and a highly flexible packaging line developed specifically to address this unpredictability. The name given this service is Co-Packing On-Demand.

Unpredictability leads to new technology Budelpack is a family-owned company named after a town in the province of Brabant called Budel, which is where the company started in 1971. It was that year that André Nieuwkerk launched the Netherlands’ first co-packing operation at his confectionary as a service for Mars.

Since then, Budelpack has become one of Europe’s leading co-packers.

Each year, Budelpack co-packs more than 360 million solid, liquid, powdered, and granulated food and pet food products in primary packaging. The company operates a multi-client plant in Poortvliet in the southwest of the Netherlands, and through its partnership with a wellestablished logistics provider, it can pack products anywhere in Europe and the U.K. Up until 2020, when its Co-Packing On-Demand line became operational, Budelpack’s meal-kit clients comprised larger companies only, with the total number of SKUs handled by the co-packer numbering 300. For these larger brands,

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Budelpack

to name a few, in sizes from 35 g to 350 g.

“Budelpack therefore said, ‘Let’s develop a planning and production process based on that unpredictability,’” shares Nieuwkerk. “That is why we started developing Co-packing On-Demand.

You no longer keep stocks and what you produce is sold.” For the smaller mealkit company, this also means they can quickly change menus and can easily include in their kits products that vary in portion size.

Continuous production ensured

s Peter Nieuwkerk, Managing Director, Budelpack the co-packer produces batches from 10,000 to 100,000 at a time.

In 2018, a meal kit company approached Budelpack looking for small, changeable orders of 200 to 1,000 bags per run. The unpredictability faced by the meal-kit concern is one Peter Nieuwkerk, Budelpack Managing Director and son of company founder, André Nieuwkerk, is very familiar with.

“The only certainty we have as a copacker is the uncertainty. We don’t know who is going to order, what they are going to order, or when and in what quantities,” he says. “The classic reaction to this is that you produce various series and put them in stock and deliver from there, with the risk that you build up too much stock.

Of course you can try to predict production batches, but if you have a customer with many different SKUs, that becomes a complex and risky prediction with the danger that you will have stock left over.”

While the new meal-kit customer was looking for small runs, the job they presented Budelpack was complex. Their product range consists of more than 200 SKUs bound for countries across Europe and includes a full assortment of rice and grain, including basmati rice, bulgur, couscous, freekeh, jasmine rice, quinoa, risotto, panko, orzo pasta, and pearl barley,

As most co-packers can attest to and Nieuwkerk confirms, high-speed production on-demand typically doesn’t occur in the co-packing industry. Because such a system was not available off-the-shelf, Nieuwkerk challenged his technical people to develop a packaging line where the consumer could enter orders directly.

In six months’ time, a multidisciplinary team from Budelpack had engineered and installed the new line as well as developed a custom production and planning

software system. The packaging line, which became operational in late 2020, is fully automatic, from unloading of product to case packing. While Nieuwkerk is keeping details of the suppliers of the equipment close to the vest, he does share the packaging process.

The line begins with two bulk unloading systems, each with its own hopper and multihead weigher, which allows operators to quickly change product types without stopping the line. The weighers portion the rice or grain into hopper elevators that carry the product to the line’s vertical form/fill/seal pouch machine. The filled bags then go through a checkweigher and metal detection station to the labeling unit, after which they are case-packed.

The vf/f/s machine is designed to handle just one pouch width, but the length of the bag can vary from 100 to 200 mm, ▼ The label printer/applicator uses one size label with a preprinted border; product details are printed in-line in the required language.

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depending on product type and weight.

Labels for the products are consistent in size at 60 x 90 mm and are preprinted around the edges with colors that link to the product flavor, while the rest of the label is blank. Product information in the required language is in-line printed. Color printing is not possible due to the high speed of the line. Each time a new product is run on the line, an operator changes over the reel.

The system’s ‘central brain’ Guiding the entire on-demand process is Arcaplan, the “central brain” of the system, named after Budelpack technicians Arjan and Carlos, who developed the software system in-house.

Through Arcaplan, consumers order meal kits online on the provider’s website.

Budelpack then receives automatic downloads from the online shop.

The system loads all orders and forms a register every two hours that contains a

s Hopper elevators carry product to the line’s vertical form/fill/seal pouch machine.

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planning order of a series of production orders with numbers and product type.

This planning order goes to the so-called “Register Box” that sets up and controls the various machine components.

For example, the system combines all orders for white rice and then produces the white rice orders first, within which it can be varied in weight and country label. After that, the system switches to the other bulk station and can execute, for example, basmati rice orders. Bulk product may vary every two hours, a SKU may vary every two minutes.

Nieuwkerk provides an example of how the system works: “If 400 bags of 250-gram pouches of basmati rice are needed in the Netherlands, the line produces Dutch packaging with a label in Dutch and the right amount of rice, the right-size bag, and the right outer carton. Then, if 200 bags with 300 grams of couscous are required for the U.K., shortly afterwards, English couscous bags roll off the packaging line in a different format with English labels. The line therefore produces unique items on-demand one after the other.”

He adds that with these small order sizes, an operator cannot set up the machines every time, “because then you have no production time left. “You have to do that in one go,” he says. “We call it a flying changeover.

“Completely emptying a line takes time, which is why we put the elevator station in-between, so you can change immediately. The system tracks each dosage and links it to the pack size and label. An in-line cleaning system ensures that the trays are quickly cleaned for a product change. Only during a wet cleaning, for example with a greasy type of rice, should the line be stopped.”

Of course, the end result, a simple paper pillow bag, is not special. Anyone can make it. But how we make it and that we don’t have to keep stock and can produce small batches in a short time is special.”

this one customer, “the technique can be multiplied to other projects in the future, when it is proven and developed to a mature stage.”

He adds, “This is really a unique packaging line in the co-packing world.

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Unique to the co-pack world Says Nieuwkerk, the on-demand concept has been an ideal solution to the unpredictability faced by Budelpack’s meal-kit customer, helping them eliminate stock, change their menu regularly, and deliver customized portions. He adds that while the technology is now being used only for M A RC H /A PRIL 2 0 2 2 CON TR AC T

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CPA’s ENGAGE Sets the Stage for 2022 NATALIE CRAIG, Editor-in-Chief

▲ From left: Jason Tham, CEO, Nulogy, Ryan Bouchard, Contract Manufacturing Manager, Newman’s Own, Michael Chaney, a C-level Procter & Gambleretired executive, Lee Ann Halley, Director of Operations, Natural Essentials, Robby Martin, Engineering Specialist, Bush Brothers & Company, and Erika Nava, Director, Amplify Snacks

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uring the first week of March, the Contract Packaging Association hosted its annual ENGAGE meeting, which had a record number of more than 200 attendees.

During the meeting, there were several opportunities for contract manufacturers and packagers (CM&Ps) to learn how to engage the next level of growth and opportunities, from hearing about customer needs and pain points to learning about the latest in robotics and cybersecurity.

CPGs share their pain points CM&Ps were given a unique perspective on partnerships and where the industry is headed as labor shortages and supply chain issues continue, with an informative panel hosted by Jason Tham, CEO of Nulogy.

Here are some notable quotes from the discussion: Erika Nava, Director, Amplify Snacks, discusses labor: “One of the biggest challenges has been predictability. How do we get ahead in the price when we talk about labor and budget?

What we need from our co-packers and manufacturers is the attitude of, let’s partner and work together. We needed to understand the trends, the challenges, why people were more attracted to work in specific facilities. Labor can

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choose jobs, so we need to make our sites attractive.”

Michael Chaney, a C-level Procter & Gamble retired executive, talks supply chain resiliency: “I think for years, every product supply leader or manufacturer has always said, ‘Produce profit.’ When the pandemic hit...

I think P&G did well because we had a little more resilience in the supply chain. We instituted a contingency plan.

We instituted a thought of what could disrupt our supply chain, and how do we prepare for that? Now, nothing quite prepares you for a pandemic. The reality is we try to build a more resilient supply chain, and that’s what we did with homemade factors and co-factors to build some resiliency and agility.”

Robby Martin, Engineering Specialist, Bush Brothers & Company, echoes supply chain woes : “On the front end of the last two years, it was all about supply. So, the freedom to limit your SKU offerings just so you can get more of the stuff you need to run more on the front end. On the back end, there was the issue of how do we start to return to normal? And yet, you still have supply chain disruption. We have really ramped up our SCP [Syntrol Corp Price] forecasting because we can’t get our infrastructure the way we want it to if we can’t get better at forecasting.”

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ENGAGE 2022 Cybersecurity considerations The average ransomware demand in 2021 was $570,000, and more than 65% of companies across all industries and verticals experienced some form of phishing attempt or email compromise in 2020.

CM&Ps aren’t immune to cyberattacks and the fallout from them, as manufacturing is the second most targeted industry, according to George Forrester III, a partner at AHT Insurance.

Thankfully, CPA members have access to resources and additional protections against cybercrime through AHT Insurance, Coalition, and the National Association of Manufacturers.

CPA members can get a complimentary cyber risk assessment by visiting: oemgo.to/cra22

Labor shortage paves way for robots There are 10.9 million job openings, marking a pre-pandemic high, while workers are also simultaneously quitting their jobs at record-high rates. To keep production going, many CM&Ps are turning to robotic solutions. Meredith Owen, MBA, Head of Business at Southie Autonomy, shared practical ways for CM&Ps to close labor gaps with robots.

Some instances that are prime for robotics include: « Multi/variety packs « Display builds

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Palletization, cartoning Sub kits/boxes Club packs Clamshells, blister packs Labels, hangtags, paper inserts

Eyeing mergers and acquisitions?

For many CM&Ps, being acquired is an attractive growth strategy.

During ENGAGE, Thomas Blaige, Chairman and CEO, Blaige & Company, shared unique merger and acquisition opportunities for CM&Ps: « Above-average growth, above-average profitability, and below-average capital intensity « High consolidation potential – above-average industry fragmentation « Disintermediation – brand owners shifting manufacturing to contract suppliers « Global supply chain challenges create opportunities for 3PL companies The next ENGAGE meeting will take place February 21-23, 2023 at the Westin Riverwalk in San Antonio.

To learn more about joining The Contract Packaging Association and attending events such as ENGAGE, visit: contractpackaging.org CM+P

3/18/22 9:40 AM

Association News

LIQUIDS IN BAGS VERTICAL FORM FILL SEAL MACHINES BY GENERAL

CONTRACT Manufacturing + Packaging magazine is the official publication of the CPA, The Association for Contract Packagers and Manufacturers. The association provides business development support, industry education, networking opportunities, and industry intelligence for contract packagers and contract manufacturers.

This section of the magazine is dedicated to sharing how CPA members can leverage their membership to propel their business and empower operations.

For more information on becoming a CPA member and to gain access to industry expertise, best practices, and support, visit: contractpackaging.org

CPA Engages the Industry

ENGAGE – The Contract Packaging and Manufacturing Experience In early March, CPA, The Association for Contract Packagers and Manufacturers, hosted its largest networking opportunity and conference for the contract manufacturing and packaging (CM&P) industry, its customers, and suppliers.

For a recap of CPA’s ENGAGE event, flip to page 10.

To learn more about CPA’s ENGAGE, visit: contractpackaging.org/engage

2022 CPA Show Updates Natural Products Expo West 2022

The CPA attended Natural Products Expo West as its first trade show of 2022 in March. The CPA booth was a place for industry peers and professionals to connect with the CPA Sourcing Center, showcasing three towers’ worth of member products and materials.

PACK EXPO East 2022 Following Natural Products Expo West, the CPA attended PACK EXPO East in Philadelphia. The CPA is always very pleased with the attendance and energy from exhibitors and attendees at PACK EXPO East. At its booth, the association showcased four towers’ worth of its members’ capabilities and hosted a meet and greet reception for networking.

VFFS single tube and multi-lane models accommodate fill volumes from 1 ml to 3 gallons or 10 liters with free flowing to viscous products in pillow, 3 side seal, 4 side seal and square bottom bags.

General has manufactured VFFS machines for packaging liquids in bags for over 50 years. All of General’s broad range of liquid fillers are designed and made in-house.

General designs and builds applicators for caps, pumps, and other dispensing devices.

For more information, please contact:

General Packaging Equipment Co. 6048 Westview Drive • Houston, Texas 77055 P: 713-686-4331 • F: 713-683-3967 www.generalpackaging.com sales@generalpackaging.com

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CPA Educational Programs

The Contract Packaging Association is a proud partner of The Packaging School, Nulogy University, and PMMI U If you’re looking for a refresher on the foundations of packaging, The Packaging School offers just that. Composed of 12 online courses, the Professional Certificate of Packaging teaches the materials, processes, and influences shaping the advancement of the packaging industry. CPA members receive a 10% discount on the total cost of all courses.

If you’re more interested in remote shop floor best practices and technology training, CPA members get complimentary access to Nulogy University, an online education platform that provides users with the training and education to understand the CM&P industries.

Lastly, CPA members have the benefit of taking advantage of PMMI U’s TechEd 365 courses at the PMMI member rate. PMMI’s online technical training courses provide consistent and repeatable content that is convenient and affordable, tailored to the packaging and processing industries.

To learn more about educational tools for CPA members, visit: contractpackaging.org/educational-materials

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2021 State of the Industry Report

tions and penetration rates « O ffshore- and Mexico-based competition « Sustainability trends Do you want to learn more before

investing in the full report? You can order the executive summary for a high-level overview of the report findings.

Download a copy of this report at: contractpackagingreport.com

FROM BAKING MIX TO GROUND COFFEE, if you make it, Spee-Dee ® augers can fill it.

The CPA’s 2021 Contract Packaging State of the Industry Report is still available.

This expanded, comprehensive report, now in its sixth edition, combines more than 150 online executive interviews, plus quantitative and qualitative primary and secondary research to produce a more detailed view of the CM&P industry, including its opportunities, headwinds, and evolving future.

As a CPA member, a copy of the executive summary of the 2021 report is included as a part of your membership fees.

The report provides 180 pages of information and perspective on the CM&P industry. Investors, vendors, customers, and competitors are all seeking a competitive advantage, and that edge begins with the information provided by this report.

The full report covers topics that include: « Defining the food/CPG industry by scope and revenue « Industry CAGR 2021–2025 by sector « Post-pandemic trends « The continued expansion of private equity « Industry consolidation trends « Customer views on the changing marketplace « The current labor market and widening talent gap « Demographics on size, company age, locations, and revenue « Enterprise technology implementaM A R C H / A P R I L 2 0 2 2 CON TR AC T

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Easily integrates with rotary and cup machines, in-line conveyors and VFFS/HFFS machines to fill pillow bags, stand-up pouches, rigid containers and single-serve cups.

Optional vacuum tooling eliminates product drip.

spee-dee.com | 877.375.2121 3/14/22 1:48 PM

New Products

Amber Glass Cosmetics Bottle h The Olivia 30 Super-Weight (SW) Amber bottle is designed for makeup, skincare, and fragrance products h Amber color enables glass to filter UV rays, which reduces risk of discoloration, shelf-life reduction, or other adverse effects of UV radiation for light-sensitive products Baralan International S.P.A., www.baralan.com

Continuous Inkjet Printer h The JetStream Sonic CIJ printer prints small characters on porous, nonporous, smooth, textured, curved, concave, and other substrates h Can print up to five lines of text for primary product coding applications h Features 10.1-in. color touchscreen interface, intuitive software that allows users to print messages with variable-data information, an onboard graphics editor, and a selfcleaning printhead Squid Ink, www.squidink.com

Compact Printand-Apply Labeler h The 4741 Mini print-andapply labeler features a 12-in. OD label roll capacity to match one-to-one with ribbon supply changes h Incorporates a Honeywell PXie print engine, enabling it to host standalone software applications and control peripheral devices, such as scanners and scales, directly from labeling system FOX IV Technologies, https://foxiv.com/

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CONTR AC T M A RCH/A PRIL 2 022

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New Products Packaging Suppliers: To have your new packaging equipment or materials technology featured in the New Products section of CONTRACT Manufacturing + Packaging, email a press release and image to CM+P Editorin-Chief, Natalie Craig, at ncraig@pmmimediagroup.com.

Collaborative Robot h XRX-10iA cobot has sleek, ergonomic design with a lightweight, compact arm that fits in virtually any floor space configuration h Includes compact, lightweight R-30iB Plus Mini Controller h No programming knowledge required, with Manual Guide teach programming and tablet interface h Connects with third-party grippers Fanuc America Corp., www.fanucamerica.com

E-Comm Vertical Wrapper h New NAS e-Wrap Series automated vertical wrapper uses center-folded rollstock to sleeve product into a bag, forms an envelope for the product, seals the bag, and applies the shipping label h Auto-bag length feature eliminates need for premade bags Brown Machine Group, www.brownmachinegroup.com

M A RC H /A PRIL 2 0 2 2 CON TR AC T

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Servo Filling Systems

3/17/22 10:56 AM

Ad Index TM

COMPANY/WEBSITE

PAGE 2

DO-IT CORPORATION www.cwww.do-it.com

12

GENERAL PACKAGING EQUIPMENT www..generalpackaging.com

COMPANY/WEBSITE

PAGE 8

ROBERTS POLYPRO www.robertspolypro.com

16

SIMPLEX FILLER www.simplexfiller.com

HEAT AND CONTROL, INC. www.heatandcontrol.com

9

SPAN TECH LLC www.spantechconveyors.com

IFC

MORRISON CONTAINER HANDLING SOLUTIONS www.morrison-chs.com

5

SPECIALTY EQUIPMENT www.specialtyequipment.com

14

SPEE-DEE PACKAGING MACHINERY www.spee-dee.com

13

TAISEI LAMICK USA, INC. www.taiseilamick.com

11

10

NERCON CONVEYOR SYSTEMS www.nerconconveyors.com PMMI, THE ASSOCIATION FOR PACKAGING AND PROCESSING TECHNOLOGIES www.pmmi.org

IBC 15

PROSYS INNOVATIVE PACKAGING EQUIPMENT CO. www.prosysfill.com

OBC

TEXWRAP PACKAGING SYSTEMS www.texwrap.com

Contract Packaging is a supplement to Packaging World® (ISSN # 1073-7367, a registered trademark of PMMI, The Association for Packaging and Processing Technologies. Packaging World® is published monthly by PMMI with its publishing office, PMMI Media Group, located at 401 N. Michigan Avenue, Suite 1700, Chicago, IL 60611; 312.222.1010; Fax: 312.222.1310. Periodicals postage paid at Chicago, IL, and additional mailing offices. Copyright 2018 by PMMI. All rights reserved. Materials in this publication must not be reproduced in any form without written permission of the publisher. Applications for a free subscription may be made online at www.packworld.com/subscribe. Paid subscription rates per year are $200 in the U.S., $285 Canada and Mexico by surface mail; $475 Europe, $715 Far East and Australia by air mail. Single copy price in U.S. is $20. To subscribe or manage your subscription to Packaging World, visit Packworld. com/subscribe. Free digital edition available to qualified individuals outside the United States. POSTMASTER; Send address changes to Packaging World®, 401 N. Michigan Avenue, Suite 300, Chicago, IL 60611-3789. PRINTED IN USA by Quad Graphics. The opinions expressed in articles are those of the authors and not necessarily those of PMMI. Comments, questions and letters to the editor are welcome and can be sent to: editors@packworld.com. Mailing List: We make a portion of our mailing list available to reputable firms. If you would prefer that we don’t include your name, please write us at the Chicago, IL address.

Meet Your Deadline: Grow Your Productivity Simplex Model AS-1

Built to meet your deadlines!

Increase your production.

Start-up with Simplex’s Model AS-1 electric table-top piston filler. High quality, heavy duty construction combined with easy operation.

A perfect combination for success!

Simplex offers automated fillers rss from two heads up to twelve heads along with conveyors, accumulators and unscramblers.

Simplexx Model AV-200

The Simplex Model MT-1200 has the smallest in-line footprint int in the industry! This filler’s production speed has been compared to a small rotary filler but without the all of the change parts which means less downtime and more productivity.

Simplex’s versatility has all of your filling solutions. ex Simplex 1200 Model MT-1200

Simplex Filler Company 640-A Airpark Road Napa, CA 94558

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Contact us today!

707-265-6801 www.simplexfiller.com

Built in USA 3/18/22 9:00 AM

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