Product

Flexible Spouted Pouch Packaging: The Origins of Cheer Pack

Eco-Container Corporation (ECC) acquired a state-of-the-art filler production line from an Italian equipment manufacturer, Gualapack S.p.A of Italy (Guala). Cheer Pack is the North American brand name for flexible spouted pouches that are produced on Guala equipment. Guala shares ECC's commitment to protecting the enviroment as evidenced by the absence of Bisphenol A (BPA) in all the raw materials used to manufacture the caps and straws for Cheer Pack.

The flexible pouch package format has been sold in European and Asian markets for over 20 years, where eco-consciousness and high supply chain costs have dictated innovative packaging. Numerous product categories are packaged in this format from foods to cosmetics.

Guala is the leading manufacturer of high end, packaging equipment and currently sells over 650 million pouches annually. Guala is a vertically integrated organization supplying the technology, R&D, and all packaging materials involved with the pouch in addition to the filling equipment (their Asian counterpart – Hosokawa Yoko – produces over 250 million pouches annually).

ECC believes that it has a competitive advantage in the North American market with the Guala fillers due to the fact that they have a high degree of flexibility with different size packaging and a wide range of product viscosities.

Dole Packaged Foods Inc. and ECC Contract for Cheer Pack

ECC has successfully entered into a 3 year production contract with Dole Packaged Foods Inc. for a fruit snack using the Cheer Pack spouted pouch for their Canadian business. This also involves expansion to specific international markets – Europe, Africa and the Middle East managed by the Canadian group. Dole has been 4 years in the R&D phase, with extensive consumer testing completed early in 2007.

Dole marketing intelligence indicates a high level of consumer acceptance and the sales forecasts for this packaging format are excellent. Initial projections for the Canadian launch have been increased twice to 160% of the original forecasts – 5.4 million to 8.1 million pouches.

ECC's Canadian commitments for 2009 are for 20 million plus units. This will maximize the capability of the initial Guala fillers located in Mississauga, and ECC is currently negotiating for additional fillers.

The Dole USA business division has indicated their intention to launch nationally in the USA in Spring 2009 which will require additional high speed Guala fillers. As lead times are in the 10 month range, ECC expects the USA commitment by the end of July 2008. First year volumes will be in the 40 – 60 million unit range.