Key Trends in Beverage Packaging What to invest in next?

Key Trends in Beverage Packaging What to invest in next?

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Key Clients in Asia

Over the last 15 years, CSD, Water & Still Drinks remain the highest Global per cap consumption growth in NARTD Per Cap Consumption (L/year) - CAGR 1999 2014 1999-2014 CAGR Energy Drinks 0.2 1.4 +15% Still Drinks 3.1 8.6 +7% Bulk Water 7 18.4 +7% Packaged Water 12.1 29.4 +6% RTD Tea 2.1 5 +6% Nectars 1.2 2.3 +4% Sports Drinks 1 1.6 +3% RTD Coffee 0.9 1.1 +1% CSD 26.7 29.6 +1% Juices 3.5 2.9-1% Source:Canadean 4

China & Developing Countries Remain Key Driver of NARTD Consumption Regional NARTD Consumption 1999-2012 CAGR Growth 11% 16% 11% 11% 5% 4% 1% 2% 7% 2% Regional NARTD Consumption 2013-2014 YoY Growth 3% 6% 2% 6% 1% 0% -1% 7% 1% 0% Global Asia Latam ChinaNorth America Western Europe Eastern Middle Europe East & N. AfricaPacific Ocean 2014 Volume(Mio L) 721,909 261,627 128,760 128,173 121,403 95,045 54,709 36,504 18,927 4,934 Share 36% 18% 18% 17% 13% 8% 5% 3% 1% Source:Canadean 5

Packaged Water & CSD Remain the Key Driver from Global Consumption 2014 Global NARTD Consumption Volume (Mio L) by Category 4% 3% 15% 29% 27% 6% 28% 15% 29% 33% 32% 49% 49% 10% 9% 15% 22% 6% 5% 8% 6% 5% 9% 44% 6% 4% 3% 2% 3% 9% 6% 29% 15% 11% 32% 35% 54% 39% 40% 18% 26% 30% 26% 31% 17% 19% 5% 3% 4% Global Asia Latam China North America Western Europe Eastern Europe Middle East & North Africa Pacific Ocean Sports Drinks Packaged Water Still Drinks Africa Nectars Juices RTD Tea RTD Coffee Energy Drinks CSD Bulk Water Source:Canadean 6

China, Indonesia and India represents the top 3 markets in Asia with China representing 50% of volume Asia top 6 markets volume and share 2014 (Mio L, %) China Indonesia India Japan Thailand Philippines 0% 50% 100% 0% 50% 100% 0% 50% 100% 0% 50% 100% 0% 10% 20% 0% 50% 100% Packaged Water Bulk/HOD Water Carbonates Still Drinks RTD Tea RTD Coffee Sports Drinks Energy Drinks Nectars Juice Fruit Powders Squash/Syrups 50% 49% 36% 75% 50% 5% 26% 39% 48% 21% 20% 7% 13% 26% 2% 3% 7% 2% 12% 10% 1% 1% 18% 30% 14% 7% 15% 10% 0% 0% 0% 0% 15% 9% 20% 14% 4% 1% 9% 3% 25% 40% 13% 8% 38% 1% 12% 75% 7% 4% 7% 2% 4% 10% 3% 9% 1% 11% 0% 2% 1% 5% 10% 1% 4% 0% 2% 8% 1% 1% 0% 37% 140000 120000 100000 80000 60000 40000 20000 0 48% 12% 10% China Indonesia India Japan Thailand Philippines 2015 (2014 actual) 7 19% 5% 4%

Asia Remain Higher Growth vs Global Global NARTD 5 years CAGR % Forecast Asia NARTD 5 years CAGR % Forecast 8 8

Premium, Trendy, Convenience & Cost Pack Material Year 2015 2016 2017 2018 5yr M Pack Units CAGR (%) 5yr M Pack Units CAGR (%) 5yr M Pack Units CAGR (%) ASIA NARTD Pack Material Present & Forecast 5 Years CAGR % 5yr M Pack Units CAGR (%) Glass 2.94 4.89 4.28 4.51 Paper & Board 6.43 6.36 6.90 7.13 Rigid Metal 7.61 7.99 7.31 7.37 Rigid Plastics 10.82 10.46 10.31 9.82 9 9

Premium, Trendy, Convenience, Cost Year 2015 2020 Pack Material Category 5yr CAGR (%) 5yr CAGR (%) Still Drinks 9.60 11.84 Carbonates.54 6.31 Packaged Water 9.71 8.51 Iced/RTD Tea Drinks 2.44 3.86 Glass Iced/RTD Coffee Drinks 2.41-1.28 Juice 3.45 5.94 Nectars 6.64 4.93 Sports Drinks 2.65 4.18 Energy Drinks 3.12 3.39 Still Drinks 6.67 6.60 Carbonates 8.94 6.79 Packaged Water 13.39 10.85 Bulk/HOD Water 20.69 21.44 PET Iced/RTD Tea Drinks 2.85 3.77 Iced/RTD Coffee Drinks 11.41 8.59 Juice 7.79 9.08 Nectars 8.96 7.69 Sports Drinks 5.72 9.47 Energy Drinks 26.62 13.65 Still Drinks 13.23 8.60 Carbonates.38 3.47 Packaged Water 13.90-4.77 Iced/RTD Tea Drinks -2.54 2.81 Metal Iced/RTD Coffee Drinks 2.14 2.76 Juice -.05 -.51 Nectars -8.23 1.47 Sports Drinks 3.63 4.70 Energy Drinks 33.57 14.85 ASIA NARTD Pack Material by Category Present & Forecast 5 Years CAGR % 10 10

The Rise and Rise of Cost Ingredients Sugar / Juice Raw Materials PET / Metal Distribution / Production Costs Downsize bottle Reduce juice content etc 11 11

The Battleground: Hot Filled vs Aseptic Filled Although initial investment costs are high, aseptic is becoming the norm in Asia Ability to use lighter weight pre-form and innovate different shapes holds the key 12 12

Coca-Cola Marketing Green PET in Asia Design Reduction in cap size, twist design Weight Recycling 11.8g for 500ml package, 34% less plastic than previous package Creates 86% more space for recycling Marketing 1.Choose 2. Enjoy 3. Twist and Recycle 13 13

Smaller Servings Pushing On-The-Go Consumption 14 14

Both Coca-Cola And PepsiCo Under Pressure To Maintain Volume Growth All Coca-Cola and PepsiCo carbonates increased from 500ml to 600ml Despite upsizing carbonates only expected to grow 4% in 2013 and will maintain 3-4% growth between 2014-2018 15

Sparkling ( Cola/Non-Cola ) Competition and Channel From November 2014, SPVB sparkling products packaged in PET bottle has been increased in volume, 25% of volume added with no changes in price. Product range: Pepsi, 7Up and Mirinda. 16 16

Single-Serve Multipacks Geared Towards Cans And Cartons In China Whilst PET Is Perceived As Mass Market / Low End Products Red Bull No.1 Brand in energy drinks category Jiaduobao No.1 Brand in herbal tea category Mengniu Milk Deluxe No.1 Brand in premium white milk category 17

Sleek Can becoming trends in Asia Sleek Can has been widely use by players in Asia Premium for on the go consumption Available in different pack size such as 330ml or 250ml 18 18

Next level of Marketing Communication on Can Design Every country in the region will have different theme or slogan for the can design Print your own name on the can Festive season special packaging or theme 19 19

Special Edition Cross over with Fashion, Super Star Mark Jacobs Aape Beyonce 20 20

Uni President China RTD Tea One of the most successful new product development in China recently Story Board A story to tell about the kid, Remind your childhood time Physical products launched after the story over the social media 21 21

Challenges for Suppliers Customers are getting more demanding Faster Speed / More efficient cycles for production Reduce Costs caps / pre-forms / ingredients Integrating processes bring things in house Suppliers Need to Innovate Moving into new categories Better servicing and improved product quality / functionality Constantly finding ways to reduce cost Lean Operation Be creative big ideas To be market maker rather than follower Flexible, Adapt to change quickly based on the external environment changes Global supply chain, Value Chain Understand local culture localize your product to suit local consumers 22 22

Thank You! HENRY LOW Key Account Director Asia Region E: henry.low@canadean.com T: +852 2690 5204 www.canadean.com