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Lightweight PET bottle project Mihaela Pierova, Marketing manager DEVIN JSC AmCham meeting, 31 March 2009

Lightweight PET bottle project Mihaela Pierova, Marketing manager DEVIN JSC AmCham meeting, 31 March 2009. Project top-lines. Project: Decrease the PET weight of DEVIN bottles by 15%. Project benefits: ECOLOGIC - Decrease the waste of PET ECONOMIC - Increase profitability per bottle

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Lightweight PET bottle project Mihaela Pierova, Marketing manager DEVIN JSC AmCham meeting, 31 March 2009

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  1. Lightweight PET bottle projectMihaela Pierova, Marketing manager DEVIN JSCAmCham meeting, 31 March 2009

  2. Project top-lines • Project: • Decrease the PET weight of DEVIN bottles by 15% • Project benefits: • ECOLOGIC - Decrease the waste of PET • ECONOMIC - Increase profitability per bottle • MARKETING - Improve the bottle emotional and functional benefits

  3. The constraints • Production, Lines and Financing • Old Sidel (FR) lines with limited options for improvement • Line capacity of 8,000 bottles per hour • Line does not allow light weighing of PET bottles • New higher capacity and modern line required • Cost for all lines upgrade 7Mio EUR • Financing new purchase of lines

  4. The solution Purchasing of new production lines • New lines with top world quality and efficiency Financing • Through IPO (initial public offering) on the Bulgarian Stock Exchange ‘07 • Raised 9mio EUR for plant renovation of which 7mio EUR, invested in purchasing of world-class lines Krones & Cosme 07-08

  5. Before & after • Increased line efficiency, less waste of resources & water spillage • The lines – productivity +284% BEFORE AFTER BG, SIDEL KRONES, COSME 500ml & 1.5lt PET 8000bph 25,000bph +313% 7 & 11lt PET 300-500bph 1000-1200pbh +287% 500ml & 1.5lt PET gas 3,000bph 6000bph +200%

  6. Before & after • The PET bottle pre-form -15% BEFORE AFTER 500ml PET 17gr 13.5gr - 21% 1.5lt PET 36gr 28gr - 22% 7lt PET 130gr 110gr - 15% 11lt PET 125gr 140gr - 11% 500ml PET gas 36gr 30gr - 17% 1.5lt PET gas 28gr 23gr - 18%

  7. Before & After • Increased line efficiency • Financial benefits – significant increase in profitability per bottle • 7mio EUR investment, payback 5yrs • Increased energy efficiency per bottle by 20% • Decreased production cost per bottle • Decreased HR costs twice • Decreased write-offs • Decreased water spillage

  8. Before & After • Marketing effect EXTREME MAKEOVER Emotional benefits - just beautiful Physical benefits – anti-slip grip - enhanced stability

  9. THANK YOU!

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