ASEPTIPAK 2011

1. PRIORITY CONSULTANTS INC. PCI “Protecting Brand Equity and Providing Supply Chain Efficiencies Through The Utilization of Bulk Aseptic Technology” ASEPTIPAK 2011

2. Topics to be Covered • Background in Aseptic Technology • 40+ years in the food and beverage industry • 17 years in aseptic • Protecting “Brand Equity” in a Complex Market • A Simple Solution • Compounds • Blends • Unitized packaging • Cost Reduction and Benefits • Bulk Unloading Systems  • Aseptic Valve –ITW • Aseptic Unloading – Partnership with German Engineering Firm • Questions and Answer

3. Background • 40+ years in the food and beverage industry • Southern Illinois University – Degree in the School Arts & Design – Studied under Buckminster Fuller 1969-1971 • Started with The Stange Company setting up the distribution of key KFC product thru local distributors in 19 states 1971-1975 • First entry into the citrus industry as Director of New Business Development for Crystals International (Freeze-Dried Citrus) 1975-1980 • Taco Bell Franchise outside of Chicago 1980 -1983 • McCormick and Company – Supplying Yum Brands – first look at flexible packaging and at aseptics with Garden Fair in 1985 1983 -1990 • Established Priority Consultants Inc. 1990 – Today • ASEPTIC PACKAGING AND PROCESSING TECHNOLOGIES • SPECIALIZING IN NEW BUSINESS DEVELOPMENT. • MARKETING FOR THE BEVERAGE AND FOOD INDUSTRIES. • MERGERS AND ACQUISITIONS

4. 17 Years in Aseptic Facilities • Merlen Foods1994 – SR. VP General Manager, Rochelle IL. First true high acid aseptic B.I.B facility in North American • Focus on Foodservice applications – Bag in Box • Tetra single tube processor • Liqui-Box web-feed aseptic filler • Scholle web-feed aseptic filler • American Purpac Technologies 2002 – CEO/ Founder, Beloit Wisconsin • Focus on compounding, blends and unitized packaging Rated as one of the 5 top aseptic facilities in the World • APS multi-tube systems (2) • Scholle Bulk and BIB web-feed aseptic fillers • Liqui-Box aseptic Filler • Hot fill bottle line • Hot filled cup line • Sold to Wild Flavors 2008 • Dohler–Milne Aseptics –COO/ CBDO - Prosser, Washington 2010 • 50/50 JV between Dohler Group- Germany and Milne Fruit Products, Prosser Washington • Focus – conversion of frozen pails to aseptic 5 gallon units and compounds, blends and unitized packaging • 2 – ThermoLine processors - (1) Triple tube – NFC to Purees (1) Tube in Tube – Pilot line • 3 – ELPO filler (1) Single head -manual (1) Web-Feed (1) Single lane bulk filler Drums & Totes • Continue to work for a wide range of companies that see the benefits and future growth of aseptic technology globally.

5. “Protecting Brand Equity” in a Complex Market In the last 10 years, the consumer market for extremely complex food and beverage products has experienced increasing demands on manufacturing facilities. Many of these facilities are not equipped to properly handle, blend, or properly process these complex ingredients with a formulation. Brand owners are now having to create higher quality produces, offer more varieties, with more complex products and at more competitive prices, then ever before. From a manufacturing point of view, these new products present new levels of challenges that have to be combined with shorter product lead times, increase in ingredient cost, more inventory, increase in transportation cost and utilizing existing facility that were not designed for these multiple ingredient complex products. As products continue to be more complex, so does the cost of finished goods increase, new safety standards on handling ingredients, and so innovative cost controls need to be in place to fight for market share with your competition . “If sleeping all night without concerns over Quality Control, Cost Reduction, and Food Safety for your Brands Equity is important, then you need to listen today to what I have been promoting for 17 years by the : “Utilization of Bulk Aseptic Technology for your Supply Chain Efficiencies!” 

6. A Simple Solution • A simple solution that has been in place thru-out the industrial world, with increasing new interest in North America. This technology is now being employed into the new global growth markets by leading ingredient suppliers to meet this new demand for complex products, cost reduction and food safety, by utilizing the technique of • COMPOUNDING • CUSTOMER BLENDING • UNITIZED PACKAGING of key ingredients, along with aseptic processing and packaging technology. Bulk aseptic compounding technology will become as standard as it is outside of North America for competing in a complex market by protecting “Brand Equity and Providing Supply Chain Efficiencies”

7. Compounds Compounding - sometimes referred to by Coke or Pepsi as concentrate business: • Determine bulk ingredients used in each formulation: • Water • Sweetener • Bulk juices like Pear, Apple or White grape juice – in some products all juices are added to compound, based on total percentage. • Determine key ingredients to be in a compounded • Additional low volume fruit, berry or vegetables juices • Flavors and Colors • Emulsions • Nutritional components – vitamins, minerals, extracts and oils • Any additional small volume ingredients – stabilizers, gums etc. • Determine blending sequence of ingredients and to determine using specialty equipment like: • Liquefier • Homogenizer – rate • Can be design as a two part system, because of raw material interactions

8. Compounding • Determine the volume required for a batch size thought the manufacturing system – unitized maybe required based on % of juice in a formula • Determine the best bulk aseptic packaging for the project • Bag in Box • Drums • Totes – various sizes • Determine reusable or corrugated totes • QA testing procedures – brix, pH, acidity, color, flavor or as required. • Certificate of analysis with each batch • Adjustment to the formulation from time to time without changing the spec by sourcing different varieties of some raw materials at different percentage • All key ingredients always available and within specifications based on production schedule

9. Blends Packaging • Blends are very simply blending of multiple juices, berries, or vegetable juices into aseptic packaging that would include • 5 gallon BIB’s • Drums • Various size totes • These blends simplify blending of these juices into a batch. • Additional complex ingredients can be added to this blend. • QA testing procedures – brix, pH, acidity, color, flavor or as neeeded. • Certificate of analysis with each batch • Adjustment to the formulation from time to time without changing the spec by sourcing different varieties of some raw materials at different percentage • All key ingredients always available and within specifications based on production schedule • Example: Three berry blend for McDonalds Smoothie?

10. Unitized Packaging • Is taking key juices, berries and vegetable juices as concentrates or single strength in pre-determined volumes for products that have low juice levels. • That the unitized packaging can be added by either a single unit or multiple units, when being added into a batch to insure precise volumes per batch, without measuring. • This insure that the quality and freshness of these ingredients for every batch is the same at all manufacturing facilities globally. • Additional complex ingredients can be added to this blend. • Vitamins / Minerals • Nutritional and functional ingredients Example: cranberry and blueberry juices in a formula at 2%

11. Cost Reduction & Benefits • Correct specifications on all ingredients and finished products • Across all manufacturing facilities • Raw materials cost reduction • Purchasing in the largest packaging from pails to tankers • Using ingredients from only approved suppliers, at contracted price • Freshest products used – just in time delivery • Reduction in delivery cost of raw materials to a single location for multiple bottling facilities • Elimination of out dated ingredients in multiple locations • Inventory reduction in multiple locations • Single source supply point • All ingredients always available and within specifications based on production schedule • Mini/max inventory levels based on total individual bottling facility production requirements • Just in time delivery – example -one truckload for next weeks production just in time • Reduction in labor cost • Handling • Thawing time eliminated • Blending time

12. Cost Reduction & Benefits • Eliminated any waste of ingredients – you pay for what you get!!!! • Total traceability from one source and on time • Warehousing • Eliminated frozen warehousing cost • Opens up internal warehouse space by a single slot that represents multiple ingredients in a single unit – stored ambient • Eliminates outside warehousing – • In and out charges and transportation cost or fees • Energy cost reduction – freezer , handling and transportation • Transportation cost • Elimination of frozen distribution • Ambient or refrigeration based on time of year and location temperatures • Reduction in LTL shipments of low volume ingredients • Reduction in capital investment of new equipment to meet complex product formulation blending and batching requirements within multiple facilities • Total food safety with commercially sterileproduct every time

13. Current Aseptic Facilities that Can Provided these Services • Dohler-Milne Aseptics – Prosser Washington • Dohler Globally • Wild Aseptics – Beloit WI. • Wild Flavors – Erlanger, KY. • Wild Flavors Globally • I am currently working on other locations in North America to add this technology within their existing operations for innovative companies!

14. Aseptic Bulk Unloading System As I have been promoting today the utilization of aseptic processing and packaging in the usage of bulk compounds to “Protecting Brand Equity”, my next focus has been on the design of a bulk aseptic unloading systems for compounds. This technology eliminates a large part of the capital investment in new aseptic facilities globally, with a single integrated design for the dilution of compounded concentrates into single strength ready to pack products on a single closed loop system. This system was created as key components were created to make this a total system from start to finish. The goals was to be able to take a compound in a 1,000 liter tote, unload it into a system that would then dilute the concentrated ingredients from the tote, by blending it with sterile water and sweetener back into a single strength product without breaking sterility. The final step is to add aseptic flavor dosing to the mix to provide the final quality improvement and cost savings feature in the design. Positive quality effects are expected due to reduced heat treatment and direct flavor dosing This single strength aseptic product can then be moved to a aseptic filler without ever braking sterility. One could even take the concentrated compound and dilute it into a lesser concentrate to be packed as a 4 to 1 concentrate in BIB. We have even included in this system the capability of pre-testing the compound for containminated product and by employing energy efficient sterilization and cooling methods to insure sterility at all times, if there is any issues with the compound.

15. Where it All Begins ITW Fastex designed this “One Usage” aseptic valve that was one of the key component to the design of a bulk unloading system of aseptic compounds. The valve had to withstand the pre-sterilization temperatures prior to opening, be re-closable without breaking sterility and have a cost that would not affect the benefits of using compounds aseptically. This valve provides the ability of having aseptic totes of compounds shipped to a facility and be unloaded aseptically, with a completely disposable packaging. It also lets an operation pump out just the right amount of product from a 340 gallon tote that is needed and re-close the valve without breaking sterility within the bag.

16. Separate Component Processing (SCP) System DRAFT Proposed process design • Add product water (aseptic) • Add aseptic sweetener (aseptic) • Flush sweetener piping w/ product sterile water • Add compound aseptic juice concentrate • Flush concentrate piping w/ product sterile water • Aseptic dosing of flavor top note in line • Add sterile product water to min. Brix Technical Options to be evaluated • Tote design and operation A1. Type of outer Container A2. Bag design, QC, sampling A3. Product losses, emptying A4. Valve design, docking system • Heat treatment (needed?) B1. Type of heat treatment (conventional vs. steam injection) B2. Product cooling (needed?) • Type of water sterilization • Aseptic flavor dosing • Type of mixing device(magnetic, Isomix®, etc.)

17. Savings Comes From • Eliminating Capital Investment of • Bulk storage tanks for ingredients other than sweetener – • Blending tanks – pumps, valves, flow meters etc. • Liquefiers and homogenizers – for complex products • Aseptic Processor – both high and low acid products from a single source on one filler • Aseptic surge tank • Pumps, valves, flow meters etc. • Elimination of labor • Bulk receiving and handling • Thawing and pre-blending • Blending all ingredients • Processing management • CIP time

18. Savings Comes From • Reduced flavor costs by aseptic flavor dosing • Zero product losses • Inventory reduction in multiple locations – just in time delivery for multiple products of different products on one truck • Opens up warehouse space by a single slot represents multiple ingredients in a single unit • Correct specifications on all ingredients across all manufacturing facilities • Total traceability from one source • Waste reduction • Inventory reduction

19. Willkommen bei Nutreon® Let Us Evaluate How This Technology Can Fit Your Aseptic Production Requires and Needs Nutreon Engineering GmbH An der Goldgrube 43 55131 MainzGermany Ralf TeschGeschäftsführer Büro +49 (6131) 33 99 7-0Fax+49 (6131) 33 99 7-99 E-Mail ralf.tesch@nutreon.de Internet www.nutreon.de PCI

20. PCI Questions and Answers? Thank you! D. Scott Eckman President/ Founder Priority Consultants Inc. “PCI” 630-404-0458 pciseckman@aol.com