CPP INSIGHTS - SEPTEMBER 2021

www.creativeprintpack.com

Issue 7 | SEPTEMBER 2021

CPP

INSIGHTS 15 World's First Concept-Oriented Print and Packaging Magazine

SPECIAL BOARD

NEXT BIG THING

STEPPING TOWARDS SUSTAINABLE PACKAGING STRATEGY

Celebrating

ann

iv e r s a ry

CPP INSIGHTS

World's First Concept-Oriented Print and Packaging Magazine

EDITOR IN CHIEF RAGHU KACHARAGADLA raghu@creativeprintandpack.com

FOUNDER AND MANAGING DIRECTOR KONDAIAH CHOWDARY P

WRITER CPP Insights Team insights@creativeprintandpack.com

GRAPHIC DESIGNER CPP ID Team design@creativeprintandpack.com

DIGITAL TEAM Think Beyond Creativity tbc@creativeprintandpack.com

CONTENTS AI IN PACKAGING : P1 -P5

How artificial intelligence is driving the packaging industry forward

OPTIMIZE PACCKAGING DESIGN USING AI: P7-P9 How To Optimize Packaging Design Using AI

SMART CONNECTIVITY: P11-P13

Smart Packaging vs. Connected Packaging: What’s the Difference?

EMBOSSING-DEBOSSING: P14-P16

How Embossing Debossing Adds Value to Your Folding Cartons

LAMINATION: P18-P20

How Specialty Coatings Elevate Your Folding Cartons

SPECIAL BOARD: NEXT BIG THING Copyright© 2021 CPP INSIGHTS

marketing@creativeprintandpack.com

ENHANCE YOUR BRAND

Make your brand an integral part of customer life with innovative packaging.

we at CPP, design and manufacture packaging solutions with #weloveyourproduct concept. It helps to enhance your brand to the next level. creativeprintpack.com

AI IN PACK

AGING

How artificial intelligence is driving the packaging industry forward

Artificial intelligence (AI) was once considered the future but has now become a part of daily life. Automation has made processes easier, more agile, and faster. These are important factors that have led many industries, including packaging, to gravitate towards implementing pioneering AI systems. CPP Insights talks with industry experts on the potential of AI within the sector.

Transforming the grocery trade The internet is transforming the grocery trade, just as it has revolutionized so many other retail sectors. Technology is transforming both supply chains and the consumer’s relationship with shopping and products alike, and packaging has a key role to play in this. This is according to Kondaiah Chowdary, Managing Director at Creative Print and Pack speaking with CPP Insights about the benefits of AI. CPP INSIGHTS - SEPTEMBER 2021

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“While the primary purpose of packaging will always be one of protection and preservation, it now offers great potential for personalization and a consumer experience that can both surprise and delight the consumer. Thanks to smart packaging technology, every package sold can now carry a unique digital identifier, creating the opportunity for direct one-to-one conversations with consumers, as well as helping drive efficiencies across the entire supply chain,” Via innovative radio frequency identification (RFID) applications on packages, e-retailers have seen up to 30 percent increases of a specific brand’s sales, he explains. Eretailers are able to leverage their deep customer data to identify the most desirable, and profitable products and this is contributing to an ongoing shift in the balance of power from brands to e-retailers, who possess the biggest store of personal data and can, therefore “own” the consumer relationship – while developing their own private label offering.

“Brands are using customer data collected across digital touchpoints, be that when they order online, or through smart packaging features, to solve complex and personal challenges for consumers one-on-one. Data can also be used to create custom products in smaller batches to meet ever more specialist needs” AI will impact packaging in three distinctive ways.

1. First, via the use of analytics and predictive tools that will allow a better match between demand and supply by recognizing patterns and analyzing fluctuations on the consumer-demand side and allocating supply capacity along the value chain in time.

2. Second, on a production level, AI tools can optimize technical parameters to drive higher output and improve the reliability/technical availability of equipment (e.g., predictive/prescriptive maintenance).

3. And last, he says, moving forward in digitizing the pack itself, for example, AI will enhance the customer experience by personalizing the content associated with a specific pack.

“Messages and interactions triggered by scanning a pack can, for example, be specific to the shop the product was bought at or the location the product is being used at.

Sustainability in AI A major overarching trend in packaging is sustainability.

“Recyclable Design” was tipped by Innova Market Insights as the number one industry trend for 2021. How AI fits into this trend is the question that remains.

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BENEFITS

“AI will trigger and accelerate trends According to one of the survey, 80 that positively impact sustainability, percent of consumers in South Korea – such as increasing system efficiency, the most developed country for ewhich goes usually hand-in-hand with commerce – and 74 percent in the US an environmental footprint reduction. say they would avoid goods that are Additionally, predicting demand and wrapped in several layers, for consumption, for example, based on environmental reasons. “The industry weather data can help improve food must, therefore, respond accordingly to supply efficiency by reducing meet these changing demands,” avoidable food losses from field-tofork.”

Mr. Chowdary explains that from an e-retailer perspective, secondary packaging, such as film wrap on product trays, adds considerable time and complexity, and some e-commerce pure players report that removing such packaging before repacking for fulfillment accounts for 10 percent of a product’s costs.

As online grocery sales increase, food and beverage producers will need to have a closer look at their secondary packaging and come up with new solutions to create value in an increasingly omnichannel marketplace.

“Over the last year, CPP Insights [associated with Creative Print and Pack] has been working on a research project with a packaging design and manufacturer to explore new ways of creating value in this space, and one concept that we have developed is the online grocery-ready package. This concept aims to either redesign secondary packaging to reduce complexity or reinforce primary packs to remove the need for secondary packaging entirely.”

“Looking ahead, the increased use of robots to pick and pack products for shipment emerged as the number one trend for 2025 in our e-retailer survey.

Robots are already widely used by Ocado (English online supermarket) and also

by Amazon, which has deployed more than 100,000 Kiva robots in 25 of its around 150 CFCs worldwide, helping to cut the ‘click to ship’ cycle from roughly 60-75 minutes to 15 minutes.”

Limiting parameters Despite its many reported benefits, there are certain limiting parameters of AI that are not easy to tackle. According to Mak, AI requires sufficiently specific data, meaning that data collection is a prerequisite for applying AI tools. Therefore, packaging companies need to identify use cases before generating and storing data.

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“Often, this involves investments into sensors, connectivity, cloud solutions, etc.

Identifying those use cases with the biggest business impact and a compelling financial case will determine the uptake of AI in the packaging industry.”

Additionally, “fast-growing online grocery will be a major disruption for the industry – with double-digit growth in online grocery expected in the next four years,” says Carvalho. Offline and online are merging to create both a better consumer experience and better efficiency for the entire supply chain.

“Online grocery today is still largely for stock-up. But we expect that to change as delivery becomes faster, prompting the shift to convenience shopping that dominates physical retail stores. As an ever-growing number of consumers are going online, this brings new opportunities for food and beverage brands to engage consumers directly and stay relevant.

In this space, a smart, digitally-enhanced shopping experience has become a reality in supermarkets after the strategic partnering of Israeli start-up company Supersmart and packaging and labeling innovators Bizerba.

How companies are innovating The top technology trend identified in a retailers survey in 2021’s Index were data carrier systems such as RFID and QR (Quick Response) codes, which are key enablers of a transformational data chain for the company’s customers.

Creative Print and Pack [CPP] is currently piloting RFID to transfer packaging material information between its factories and filling machines at customer sites.

This has a number of benefits, such as reduction of operator dependence through the automatic reading of tags, mitigation of incident risk by automatically matching packaging material and filled product content, increased traceability, optimized logistics and warehousing, and waste reduction.

In the same space, CPP is applying AI tools to improve its own capabilities to better meet customer demand. This includes the introduction of machine data-based predictive maintenance and the digitization of CPP’s production.

“At a later stage, CPP will integrate AI into its solutions portfolio for Smart Factories and Connected Packs. This includes the consideration of ways to use this technology for further lowering CPP’s environmental footprint and increase benefits for society,”

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The future of AI Looking ahead, the increased use of robots to pick and pack products for shipment holds a lot of potentials. The whole process, from parcel sorting to loading onto trucks, could well be fully automated. The use of robots to pick and pack products increases the capacity by about four times that of human-run centers.

“The packaging industry might see the introduction of dynamic pricing along the value chain, thereby optimizing economic value for the industry players.” “e-retailer survey also suggests that the use of technology in order fulfillment and the last mile could cut delivery times to within 10 minutes of purchase by 2025. This would significantly change consumer attitudes to online grocery shopping, driving them to buy in smaller amounts, more frequently, often for immediate consumption; to store less and to be much more conscious of food waste.”

As technology moves forward, automation, e-commerce, and how AI fits in the equation will be a topic that will continue to pique industry interest.

experience the refreshment of unboxing

g n i x o b or

unboxing

refreshment should be there.

Let's start experience here.... we are the world's first concept-oriented mono cartons manufacturer drop a mail today

marketing@creativeprintandpack.com

CPP INSIGHTS - SEPTEMBER 2021

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HOW TO OPTIMIZE PACKAGING DESIGN USING AI

AI – or Artificial Intelligence – is sweeping through modern life, improving many aspects of both our personal lives and businesses and the design world is no exception.

1) Visualizes attention

Predictive heatmap technology like Dragonfly AI and the resultant attention metrics that it aggregates, shows you precisely which part of your design grabs the most attention from your customer.

AI-driven design is now at the bleeding edge of today’s packaging industry.

Understanding its benefits and implications in the creative process – and harnessing its power – can help a business to identify valuable opportunities to drive efficiency and free up human resources.

Here are three key ways in which an AI tool like CPP AI can help you to optimize your packaging design by using visual analytics:

You can apply our AI analysis to a prototype of your product, or if you want to do a live walk-through – you can use our app to show you exactly how your product will look in-store and precisely where a customer’s attention will focus on it.

You get to see your product in the context of its environment exactly as it will be seen by a customer. What’s more, you can apply CPP AI to your website or e-commerce store to show you which package design attracts the most attention from a user.

By quantifying attention through a series of metrics, you can start to optimize your product packaging based on what is (or what is not) drawing the most attention from customers.

There are three main metrics that we analyze when creating attention heatmaps at CPP AI. These are: Probability of Perception (PoP) Location Attention Score (LAS) CPP INSIGHTS - SEPTEMBER 2021

Share of Attention (SoA)

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For example, if you notice that a core message within your packaging is scoring less than the rest of your design, you can optimize that messaging by changing its position or colour.

Furthermore, CPP AI allows you to test up to 26 variations of a design, thereby enabling you to compare different designs while learning which one is most effective at winning attention for whichever core message you are trying to promote.

2) Speeds up design workflows Our AI-driven predictive heatmaps and the visual analytics that they produce help to speed up your design workflows. You get to analyze the efficacy of your product’s packaging before it’s ever actually seen by a real-life customer. This can be especially beneficial for agencies or large teams comprising multiple decisionmakers needed to sign off on multiple artworks.

With our AI-powered analysis, everything is examined from the core messaging of your product to the product label. CPP AI gives you real-time feedback on all of these design analytics simultaneously, helping you to optimize your packaging design before it reaches the physical or digital shelf, which saves both money and time.

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3) Helps you to validate your decisions Our use of a predictive heatmap is especially revolutionary in that it gives you instant feedback regarding the exact changes needed to improve a product’s visibility, resulting in a truly data-driven design informed by cutting-edge AI technology that is unbiased by personal opinion.

A tool like CPP AI can negate the need for a focus group.

It helps you to make decisions faster and more efficiently by removing the time wasted in the weighing up of different opinions presented by the various individual members of a traditional focus group.

For designers who want the freedom to experiment creatively with different designs, our predictive heatmaps can provide validation through attention data that helps you to communicate your ideas directly to clients or internal stakeholders.

Interested in seeing our technology for yourself? drop a mail today at insights@creativeprintandpack.com

The future of AI and the packaging industry As the only AI provider for product engineering, we believe so far we have only seen a glimpse of how machine learning can change the landscape of the packaging industry just like robotics did in 1956.

CPP INSIGHTS - SEPTEMBER 2021

However, we think that AI exists to assist humankind and not entirely replace it. So, while errors can be decreased and processes can be streamlined, the future belongs to humans and AI working collaboratively together.

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SMART PACKAGING CONNECTED WHAT’S THE DIFFERENCE? Marketers of retail and packaged goods regularly hear about new packaging options and the terms that relate to them, like “smart packaging,” “active packaging,” “intelligent packaging,” and “connected packaging.” What do those terms actually mean, and what are the differences among them?

In this guide, we’ll explain what each term means and how these types of packaging benefit specific types of products and companies, so you can decide which ones matter most to you and your business.

Smart Packaging “Smart packaging” is an umbrella term that describes packaging that uses technology to do things that go beyond just housing a product. Smart packaging is usually embedded with technology that can sense or provide information about the product or brand. Smart packaging describes a large category of packaging that leverages technology to provide functionality that goes beyond simply housing a product.

Intelligent Packaging “Intelligent packaging” is one type of smart packaging that’s typically used for food, beverage, and pharmaceutical products. Intelligent packaging may include sensors that can detect the freshness or temperature of the package contents.

Freshness or time/temperature indicators or sensors can be integrated inside or outside the packaging to show retailers and customers if an important limit has been exceeded.

For example, a color change in the packaging could indicate bacterial growth, leaky packaging, or temperature disruption. In the pharmaceutical industry, intelligent drug packaging with built-in RFID chips, LEDs, and tiny loudspeakers can register the removal of pills and sound an alarm if they are taken incorrectly. Medication packaged with NFC chips allows customers to read package inserts and reorder medication using a smartphone.

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Active Packaging Also popular in the food and beverage industry, “active packaging” goes a step further than intelligent packaging to allow the package to interact with its contents in order to improve product shelf life or the quality of the contents during storage.

Light filtering materials, oxygen and ethylene absorbers, antimicrobial surface coatings, and moisture-regulating materials can be integrated into the packaging or added separately as an insert.

For example, active packaging may release antimicrobial agents to prevent bacterial growth when it senses that a product’s freshness is being compromised.

Some beers packaged in plastic bottles contain oxygen absorbers in the screw caps that can extend the beer’s shelf life from three to six months. Film packaging with ethylene absorbers can absorb the ripening hormone ethylene while the food is being stored to ensure a longer shelf life.

Connected Packaging By contrast, “connected packaging” isn’t limited to food and beverage products—it has applications in almost every retail product category, including toys, cosmetics, gaming, and apparel. In connected packaging applications, a special code is printed on or within the product’s package. Consumers can activate this code with a mobile device to receive exclusive content.

For example, Smashbox Cosmetics used Touchcode’s conductive ink to embed an invisible code on a card that was included in its eyeshadow packaging. The card invited customers to visit a website, touch their mobile device to the card, and unlock a series of exclusive online video tutorials where they could learn professional makeup tips.

Because the code was invisible to the consumer, it did not interfere with the graphic design or copy on the card. Consumers simply typed a short URL into their mobile device, then touched the “connected” card to the screen to unlock the content. The campaign achieved a 23% activation rate, with a return user base of 50%, and increased website traffic by 1,300%.

Other brands have used connected packaging to offer exclusive content and collectible items.

P.M.I., Israel’s leading producer, marketer, and distributor of branded leisure products for children and teens, integrated Touch code into the market-leading soccer card game iSupergol. The collectible cards allowed soccer fans to scan an invisible code and get direct access to exclusive content via a digital app.

The app was downloaded 22,000 times in the first five weeks of the campaign.

Within two weeks of launch, 7.5 million products in iSupergol booster packs, which included stickers and Touch code cards, sold out completely.

Brands also use connected packaging to deliver coupons, offer collectible items, and allow consumers to confirm whether a product is authentic.

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Connected packaging applications are gaining popularity with marketers due to its ability to create deeper relationships with customers to elevate brand loyalty and increase customer lifetime value.

Let’s Review the Terms Smart Packaging: Umbrella term to describe packaging with enhanced functionality through technology.

Intelligent Packaging: Contains sensors to determine the condition (e.g., freshness or temperature) of the product. Primarily used in food and beverage applications.

Active Packaging: Interacts with the package contents to alter its condition, especially to extend freshness or shelf life. Primarily used in food and beverage applications.

Connected Packaging: Allows consumers to interact with a product through a code on the package that can be activated with a mobile device. Used by brands to deliver exclusive content to its customers.

Smart Packaging Enhances Your Brand Smart packaging is a great way to help customers connect in new ways with your brand by leveraging technology to create new experiences. Touchcode’s connected packaging solutions offer brands the opportunity to create and share unique digital content with customers.

Ready to learn how smart packaging can help your brand create deeper relationships with customers?

Contact us today at insights@creativeprintandpack.com

be smart

CPP designs and manufacture packaging solutions with touch code concept

marketing@creativeprintandpack.com CPP INSIGHTS - SEPTEMBER 2021

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HOW EMBOSSING DEBOSSING ADDS VALUE TO YOUR FOLDING CARTONS There are many ways to help your product get noticed more than other brands, and effective packaging is one of the primary means. Hot foil stamping and cold foil stamping, sustainable paperboard, and specialty coatings might be a few familiar ways.

Today, we’re talking about the benefits of embossing or debossing, and what they can do to improve your brand's appeal among consumers. First, let’s discuss exactly what these effects are.

What Are Embossing & Debossing?

Embossing involves raising a design element on a substrate, causing the area to literally stand out. Conversely, debossing means lowering a design element into a substrate to create actual depth. Both techniques provide additional texture or character to a project, enabling them to really jump out at consumers when seen on a shelf.

To accomplish these elegant design features, a custom die must be created. Once the die has been installed into an emboss/deboss machine and markers set to ensure proper alignment, an operator presses the die directly into the substrate.

High pressure and heat create the desired features and shape.

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This decorative effect can be partnered with hot foil stamping or spot gloss UV for additional polish—typically employing metallic silver and gold colors to communicate luxury or high-end value.

What to Know Before Embossing or Debossing Folding Cartons Naturally, processes will vary from printer to printer, but there shouldn’t be too much variance from the following if you’re working with an experienced packaging company.

Begin with a vector file. This format is key to any graphic design and is favored for its smooth and continuous vector lines. By contrast, bitmap images and non-vector artwork have a tendency to pixelate or create jagged lines that compromise an image’s integrity. Vector files avoid those blemishes.

Don’t overwork the graphics. Put simply, exercise caution when embossing or debossing otherwise subtle or complex graphic designs. Generally speaking, the more complicated your design, the simpler embossing elements should be. For instance, when embossing a photo or graphic, be sure the sculpted section mirrors the graphic area being embossed. You could also explore blind embossing, where you can emboss an area without any print behind it. It’s an elegant treatment when done well.

Collaborate with your printer. A printing and packaging partner who ideates and guides you throughout the entire process is worth more than their weight in stacked paperboard. Their experienced perspective is worth consulting regularly.

Okay, you get the gist of how embossing and debossing work, but how do these add value to your folding cartons? Read on.

Embossing & Debossing Add Real Value to Folding Cartons Although embossing and debossing are not exclusive to luxury brands, their decorative effects can contribute significant value to brands that tend toward the chic and ornate.

Here are just a few ways embossing or debossing can elevate your packaging: Communicate a sense of scarcity. Embossing or debossing demonstrates a certain degree of excellence that outshines traditional folding carton designs. Since they're less common as a design element, the packaging signals to consumers that the product is scarce—it’s unique and, therefore, a level above more common brands.

First impressions matter with packaging, especially if you’re a health and beauty product. Furthermore, given the personal nature of these products, consumers identify with the traits evoked by folding carton designs. Consider how you can use embossing to reflect style and dignity.

Stand out on the shelf. Similar to the previous point, embossed or debossed folding cartons attract attention. Embossing and debossing appeal to both sight and touch, providing consumers with a more immersive and engaging experience with your brand.

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Reflect on the lingering effect a folding carton will have on consumers who pick your product off the shelf and feel the raised graphic designs. It’s the little things that can be the difference between meeting expectations and delighting consumers.

Reflect a higher product value. If your product is of the quality that justifies a higher asking price, and the current packaging is a little underwhelming, then it would definitely be worth considering a redesign that includes embossed elements.

Embossing or debossing isn’t appropriate for every brand or product, but if you want to communicate a sense of scarcity, stand out among more common brands, and reflect a higher level of quality, then it may be right for you. Just don’t go overboard. Keep it simple and memorable.

Creative Print and Pack [CPP] is a printing and packaging company with more than 15 years of experience. Equipped with advanced capabilities and a commitment to excellence, we are eager to help you determine your next folding carton design and manufacturing. Contact us today at marketing@creativeprintandpack.com

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15

world's first concept oriented packaging company.

Celebrating

ann

Cheers CELEBRATING

15

YEARS

OF

EXCELLENCE

Dear Valid Patron....We may have been the perfect showstopper for all these years but it was always you behind the curtain.

- Kondaiah Chowdary P Founder & Managing Director CPP GROUP www.creativeprintpack.com

iv e r s a ry

LAMINATION HOW SPECIALTY COATINGS ELEVATE YOUR FOLDING CARTONS All that glitters may not be gold, but the glimmering shine of a folding carton certainly grabs consumers’ attention. Specialty finishing, specifically lamination, creates the gleam that invites consumers to further consider the treasure that sits inside the packaging—your product.

Let’s look at lamination and what it can do to elevate your folding cartons and, ultimately, your brand.

What Is Lamination?

Lamination involves bonding a plastic film covered with a heat-activated layer to a substrate using pressure and high temperatures. This film typically consists of polyester, nylon, or polypropylene.

Polyester is utilized in large runs, especially for two-sided applications, making it perhaps the most popular film used in lamination. Due to its flexible nature— specifically its ability to preserve graphic integrity despite folding and bending— polyester could be considered the gold standard for folding cartons.

Nylon’s separating feature is its breathability. Sometimes other laminates can trap moisture, causing folding cartons to curl or wrinkle. Nylon is typically the more expensive option, but when your product contains moisture, it may be your best.

Polypropylene is very conducive to additional specialty coatings and layered lamination. The least expensive of the three films, it facilitates the brightest colors and is frequently used in one-sided applications.

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Lamination or UV Coating?

It’s not uncommon for brands to use lamination and UV coating for similar projects since both give the substrate a glossy, matte, or soft-touch finish. However, some key differences remain between the two. UV coating spreads a liquid glaze over the substrate, which is then cured using ultraviolet light in line during the printing process. On the other hand, Lamination requires an additional step in the process to apply the film to the paperboard.

All this to say, lamination is for full coverage of a folding carton while UV can be used as a spot coating treatment to provide an eye-catching element to specific areas. UV spot coating’s best use may be to amplify particular parts of a folding carton, such as the area containing a logo or product name.

Elevate Your Folding Cartons Folding cartons already serve vital functions on their own, providing protection against the elements and empowering brands with plenty of marketing space to communicate with and engage consumers.

Specialty finishings extend those benefits in several ways.

Enhancement In addition to giving your graphics vivid coloration, you can also incorporate specialty finishings that are tactile in nature—yet another way for your brand to make an impression. You’ll want that to avoid your product being lost in a mass of colorful, attention-seeking shelf mates, however. If you really want to peacock, consider using rainbow holographic lamination to give your packaging a full spectrum shine. A high level of attractiveness is vital for cosmetic brands.

Durability Lamination transforms your substrate into a tear-proof piece of packaging (within reason). This added security protects the product inside the carton, so you don’t have to worry about the usual wear and tear damaging your packaging. Some laminate films, such as LuxeFilms®, ScuffProof®, and Karess™ SmudgeProof, are specifically designed to protect packaging as it passes through the chain of custody.

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Protection Even if your product survives shipping, it’s still vulnerable to scratches and tears when handled by merchandisers or customers. Lamination gives your folding carton an invisible cloak of protection to shield the graphical designs from being scuffed and dulled. Your boxed product will likely be handled several times by customers before it’s purchased. You don’t want those interactions to undermine the alluring shine of your visual designs.

Rigidity Akin to protection, lamination strengthens the actual structure of your folding carton, providing additional durability and thickness. This is especially important for products that contain heavier or pricier items. Consumers want to feel assured that what they are buying has been secured and protected. In their minds, the strength of the packaging should mirror the monetary value of the product inside.

Versatility When partnered with other specialty finishings, lamination can multiply visual options, alongside other specialty packaging options. Try it with embossing, debossing, hot foil stamping, and cold foil techniques. By layering specialty coatings, you can deliver consumers unique visual blends that help your brand stand out among the pack.

In summary, lamination enhances your packaging, adds durability and rigidity to its structure, and expands visual options for your brand. With this collection of benefits, it’s easy to see why so many brands are turning to lamination and other specialty finishings to help their folding cartons jump off the shelves.

Creative Print and Pack is a printing and packaging company with more than 15 years of experience. Equipped with advanced capabilities and a commitment to excellence, we are eager to help you determine your next folding carton design.

Contact us today via marketing@creativeprintandpack.com.

NEXT BIG THING

STEPPING TOWARDS SUSTAINABLE PACKAGING STRATEGY

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NEXT BIG THING

STEPPING TOWARDS SUSTAINABLE PACKAGING STRATEGY

NEXT BIG THING

MANAGING DIRECTOR LETTER Dear Beloved Success Partners, At Creative Print and Pack [CPP], we are committed to delivering Paper based sustainable consumer packaging solutions that enable environmentally responsible choices. We deliver on this promise through a highperformance culture that embraces diversity and inclusion (D&I), promotes a growth mindset and values safety and well-being.

Remaining resilient as an essential business The year 2020 was shaped by an uncertain political, societal and economic landscape — and most certainly by the pandemic.

Throughout the year, CPP remained resilient. At the start of the pandemic, we were classified as an essential business, which amplified the critical nature of the packaging we make. Not only did our packaging solutions need to be environmentally responsible; there was a higher calling: our supply chain needed to be resilient and intact to provide packaging for Pharmaceutical, food, beverages, and household products that are necessary for everyday life.

With a strong work ethic, perseverance, and dedication, the CPP team delivered and maintained continuity of supply for customers so that pharmaceutical and food store shelves remain stocked.

Keeping our employees safe Our commitment to safety allowed us to quickly adopt new COVID-19 protocols to keep our employees safe and healthy. Our manufacturing plants implemented enhanced safety procedures, and many team members worked remotely. This allowed us to seamlessly meet our customers’ expectations and packaging needs while keeping the health and safety of our employees a priority. We adapted in real-time to elevated at-home consumption demand patterns and the resulting higher volumes in Pharmaceutical, food and beverage businesses and expedited timelines.

Delivering meaningful progress on our Environmental, Social and Corporate Governance [ESG] commitments While we were meeting our supply chain partners’ expectations, we also delivered meaningful progress on our ESG commitments. We developed and commercialized innovative and sustainable Paper based consumer NEXT BIG THING

packaging solutions contributing to the four percent increase in net organic sales growth for 2020. These solutions helped our customers meet their goals with circular economy packaging and removed maximum non-renewable, difficult-to-recycle plastic packaging products with renewable and easily recyclable packaging. We continue to experience exceptional marketplace acceptance. Embracing technology, our innovation team has connected virtually to develop the next generation of solutions resulting in an even more robust innovation pipeline. Our adoption of technology and the real-time connectivity will allow CPP to increase our innovation efforts and reduce development time.

We also took additional steps to address climate change and the associated risks. Our leadership team participated in a Climate Change Enterprise Risk Assessment. This assessment was a precursor to our Materiality Assessment and provided keen insights on potential climate change risks and opportunities for CPP. Furthermore, it reinforced our strategic plan‘s effectiveness in addressing key risks and opportunities.

Doing more to address racial inequality and diversity and inclusion At CPP, we know we can do more to address and eliminate racial inequalities.

We are on a thoughtful path of learning and adaptation to ensure that our culture is accepting of diverse insights and inclusive to all. To enhance our understanding, we joined the socio-economic environmental acts. This ecofriendly based initiative will bring helpful insight as to how we can engage with communities to address racial equity. Further, we developed a D&I strategy including a framework, roadmap and key metrics to track our progress for a multi-year D&I program.

We enhanced the charter for our Board Compensation and Management Development Committee to include an annual review of the company’s practices related to workforce D&I programs, as well as initiatives to drive equitable treatment of all employees. We know that if our culture encourages diverse thinking, embraces inclusion, and supports a philosophy that all can contribute, we can be a role model for the communities where we operate.

I consider 2020, in many respects, an inflection point on ESG-related matters.

Our society and the CPP team met an extreme challenge with the pandemic. As I write this letter we are starting to see indications that we will return to a semblance of normalcy, which has been aided by the rollout of vaccines. Much more work, however, remains around climate change, racial inequality and

NEXT BIG THING

other ESG issues that are important to our business and our success partners. I know the CPP team has the resolve and commitment to continue advancing our ESG program and to meet the challenges to deliver inspired packaging with Think Beyond Creativity Concept.

Kondaiah Chowdary P Founder and Managing Director, CPP Group.

NEXT BIG THING

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WHO WE ARE CPP is a global leader in the Garment, Food, Beverages, Electronics, Agriculture, Pharmaceutical, Beauty, Cosmetics, and Confectionery product packaging sectors. We produce the Folding Cartons [eg: Coffee/Tea/Biscuit Boxes] that held your coffee this morning, the microwave tray that heated your meal at lunch, and the carton that holds the craft beer you may enjoy tonight.

We have two facilities across the India producing innovative and sustainable paperboard packaging solutions that enable our customers, some of the India’s most recognized brands, to:  Reach their sustainability  Stand apart from competitors goals  Achieve brand loyalty  Accommodate changing consumer preferences We are as committed to our customers as we are to:  Supporting and empowering our almost 500+ employees  Protecting the environment by developing a product portfolio emphasizing renewable, recycled, and recyclable materials  Giving back to the communities where we live and work Our growth and continuous improvement over our more than 15 year history reflect our deep-seated dedication to innovation, quality, sustainability, and service. These priorities, along with our Core Values, remain integral to CPP’s strategic focus.

The future of packaging The world of packaging is dynamic and ever changing. New ideas, technologies and above all, customer needs, guarantee that a career in packaging will never be dull or put on the back-burner. At CPP we recruit people with Talent Hunt concept and it is purely under CSR policy.

Your perfect packaging is just a click away With leading experts, specialised packaging know-how and experience with all types of customers all around the world, AR Packaging is here to help you find your ideal packaging solution. Enter your information below and you will find innovations and inspiration to rethink what’s possible for your product, your packaging and your business.

Excellent and Tailored Service for All Your Packaging Needs CPP Carton has an agility that belies its size. Our goal is to be of the greatest service to our customers, and in our 15+ years of doing business we have come to understand that means very different things to different people. We tailor

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our service to be scalable to address the distinct needs of our customers, and well bring you comprehensive yet nimble service for needs both large and small. Working with us, you’ll find the CPP Experience includes:  Multiple state-of-the-art production facilities  Fully integrated design-to-delivery approach  Expert graphic and structural design services  Fast production  Safe, clean warehousing  Customizable inventory management  Responsive, efficient customer service From concept to automation assistance, you can trust we’ll help with all your packaging needs.

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MISSION, VISION AND VALUESI CPP strives to be a leading partner to our customers, bringing them value through our comprehensive product offering and unique packaging innovations. We take a holistic approach to doing business, with a committed team of employees who are driven by our core values:  We strive towards a more sustainable tomorrow  We bring knowledge and improvement

 We are open and innovative  We act with a sense of urgency

MISSION: We invent concept oriented packaging solutions with passion to enhance the quality of product life and expand brand value.

VISION: By FY 2025, we will become the most aspirational Indian packaging brand, consistently winning, by…

• Delivering superior quality product • Driving sustainable print and packaging solutions • Exceeding customer expectations, and • Creating a highly engaged work force VALUES Core values are the cornerstone of our culture and guide us as we work together in achieving success.  INTEGRITY  RESPECT Integrity means honesty, Each person’s unique skills leading by example. Keeping and abilities are valued. We promises, meeting actively solicit each other’s commitments, and taking ideas and honor diverse pride in what we do. opinions.

Everyone’s contributions are appreciated and accomplishments are always recognized.  ACCOUNTABILITY Each individual is personally responsible for doing their job to the best of their abilities and delivering on results. We never quit in meeting our commitments to shareholders, customers and employees.

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 RELATIONSHIPS We have an unwavering commitment to listen to and meet the needs of our customers and create innovative solutions that result in shared prosperity.

 TEAMWORK The strongest teams share common goals and work together to achieve them. We encourage everyone’s involvement and support each other’s ideas. Team members help others without being asked.

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WHAT WE DO Our global portfolios of sustainable, paper-based packaging solutions are inspired by consumers and the dynamic marketplace. We support the circular economy by providing high-performance; innovative solutions made from renewable and recycled materials — which are designed to be recycled. This approach benefits our customers worldwide who expect solutions that deliver an optimal balance of sustainability, branding, and performance.

At CPP, we take a global and integrated approach to packaging solutions that:  Strengthen our worldwide capabilities and supply chains for local and international customers  Allow us to innovate and commercialize new solutions regionally and globally Specifically, the commercial capabilities and innovative solutions we provide our customers are to: Design and Manufacture  Mono Cartons  Paper Carry Bags  Corrugated Boxes  Photo Cards  Price Tags  Roller Packaging  Cascades  Rigid Boxes  PP and PET Boxes Printing Facilities • Sheet Fed - Offset Printing • UV Printing • PET/PVC/PP Box Printing • Screen Printing • Digital Printing • Variable Data Printing • Hot Foil Stamping When it comes to cartons, we can improve your product line, supply line, and bottom line. Using attention-getting, high-impact graphics, we build an emotional connection with consumers that brand stakeholders seek in packaging design. Our innovative ideas and turnkey solutions can make a measurable difference. We offer cartons for Garment, Food, Beverages, Electronics, Agriculture, Pharmaceutical, Beauty, Cosmetics, and Confectionery industries and more.

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INNOVATION To lead the way in creating and commercializing innovative packaging solutions for our customers, industry, and the marketplace, we:  Invest significant capital into research and development (R&D)  Support our talented, knowledgeable, and dedicated R&D teams  Facilitate creative thinking and inspired design at Creative Pro-Packaging innovation centres.  Integrate sustainability into our innovation process through our Design for the Environment (DfE) initiative INSIGHT. INSPIRATION. INNOVATION.  Great packaging ideas start with consumers.  Their lifestyles and preferences provide the insight that inspires our creative teams.  We have a long history of bringing innovation to our customers and our industry. And innovative ideas continue to drive our business today.

PRODUCT INNOVATION Customers utilizing our innovative solutions include many of the world’s most widely recognized companies and brands in Garment, Food, Beverages, Electronics, Agriculture, Pharmaceutical, Beauty, Cosmetics, and Confectionery and other consumer products. Benefits we provide all of our customers include:  Cost-effective solutions  Innovative solutions designed to meet consumer expectations  Circular solutions that are better for the environment We take pride in the fact that billions of consumers rely on our circular packaging solutions to make their daily lives easier and more sustainable. We are committed to constantly innovating to develop new recyclable or compostable, easy-to-use packaging solutions with enhanced safety and performance.

We also have multiple solutions in our product innovation pipeline that we’re developing.

OUR INNOVATION PROCESS Using a collaborative and iterative approach, we filter ideas through a series of design phases and evaluation criteria – a stage gate process, if you will. By merging your stage gate processes along the way, we can accelerate the development process and create breakthrough packaging ideas.

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RESEARCH To add value to your brand promise, first, we need to understand your customers. Where they live. Where and how they shop. How they spend their leisure time. Their hopes and aspirations. We also review and understand your manufacturing processes.

CREATIVE DESIGN Next, our team of structural designers starts building a solution inspired by the consumer insights. We recognize that adding functional benefits can change the relationship with your customers. Whether we add a handle where there was none before, or change the way your product is placed on the pantry or refrigerator shelf, changes will impact how consumers emotionally connect with your product at every touch point.

PACKAGE INNOVATION The result of our innovation process is a superior packaging solution that improves your consumer’s experience, builds brand equity and reinforces customer loyalty.

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INNOVATION CENTRES – CREATIVE PRO-PACKAGING LABS We have five Global Innovation Centres dedicated to facilitating our innovation and design process. They’re strategically located across India. This is where creative thinking becomes an inspired design that showcases your product and accelerates your brand’s performance.

Each Innovation Centre unites a wealth of packaging know-how with a world of fresh design ideas, leading technologies and new materials. With packaging samples from around the world and state-of-the-art collaboration tools, our facilities allow us to work seamlessly with design; machinery and manufacturing to ensure new designs are feasible in the marketplace.

COPSTM A unique system combining reverse printed film that can be metalized and is laminated to board to create a high gloss, durable, scuff resistant, package with an improved barrier. COPS™ can be combined with inserts or liners to create effective strength solutions.  Premium appearance provided by gloss of laminated film and metallic shine  Excellent resistance to tearing and scuffing thanks to printing behind the film  Film can be metalized for highly reflective visual effect Material Enhancements With material enhancements, we create folding cartons on a variety of unique substrates which create a stunning overall effect and make the package jump off the shelf. Perfect for product differentiation and delivering an elevated visual impact.

Material Enhancements Options  Gloss Lamination  Spot UV  Matter Lamination  Embossing  Holographic Metalized Board  Debossing  Metalized Board  and more

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MEET PACKAGING’S NEXT BIG THING CPP is a leading provider of packaging solutions for Garment, Food, Beverages, Electronics, Agriculture, Pharmaceutical, Beauty, Cosmetics, and Confectionery industries and much, much more. We develop creative carton board and flexible packaging solutions that help our customers add value to their offering and achieve success through packaging.  A leader in the Indian market, with a growing footprint that includes Asia, America and Europe  A broad product portfolio with innovative carton board and tailored flexible solutions  Advanced technical expertise and state-of-the-art printing & finishing capabilities  Complete packaging system solutions with all necessary machinery and materials  Sustainable solutions in all shapes and sizes, to meet the demands of virtually any product  Serving global blue-chip companies as well as national brands in a wide range of industries THE POWER OF COMBINED SKILLS The new CPP combines decades of knowledge and experience from leading packaging specialists all around the world. By bringing together several wellknown brands under one unified name, we give our customers access to deep product and market expertise as well as unique technical competencies. It’s how we help you find your ideal packaging – and create all new possibilities for your business.

CREATING THE NEXT BIG THING FOR NEARLY A CENTURY The origins of today’s CPP date to 2007, when Kondaiah Chowdary founded a business on the revolutionary idea of reshaping Indian retailing with prepacked goods. Their drive for change has shaped the company ever since, leading to such well-known developments as the very first “concept-oriented packaging” for all major industries. It’s the same innovative spirit that continues to drive every element of what we do today.

Since implementing extensive operational changes in 2018, CPP has been on an exciting journey of transformation. We have optimised our product offering, allowing us to focus on the development of sustainable and innovative new solutions that are once again reshaping the packaging business.

At the same time, we have expanded our global presence through strategic

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expansions in Europe, America and Asia. This dual strategy is enabling us to better support our customers in all new ways.

QUALITY AND SUSTAINABILITY ENSURING QUALITY IN EVERY PACKAGING PRODUCT Quality in both product and service is the key to keeping customers happy. At CPP, we employ a corporate-wide Quality Management System designed to ensure excellence at every step of production.

Quality Control Managers at each of our facilities oversee the implementation of our program and the Current Good Manufacturing Practices (CGMP) it requires. Our plants further utilize the latest equipment, both on the production line and in our quality control labs, to verify consistent high quality in our products.

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Our innovative, high-quality packaging solutions serve a wide range of industries, with our certifications including SQF food safety (GMA-Safe, AIB, ASI) ISO 9001-2015, G7, FSC and GMI. COMMITTED TO SUSTAINABLE & CHARITABLE PACKAGING CPP is proud to be a leading corporate citizen in the packaging industry. Our comprehensive sustainability program ranges from waste reduction to corporate social responsibility: Waste Reduction We recycle 100% of the scrap and excess material generated in our manufacturing facilities to reduce the amount of waste sent to landfills. Along with our paperboard, 100% of other by products including printing plates, shrink wrap, metal containers, banding, wood pallets and paperboard roll cores are all recycled.

Energy Efficiency To reduce the amount of energy consumed by our plants, we’ve invested heavily in modern high-speed equipment as well as low-energy lighting and heating systems.

Business Practices CPP continually expands our environmental sustainability efforts beyond our doors. We educate our customers about eco-friendly packaging options and work with them to reduce and recycle any waste related to our products. We also learn innovative sustainability practices from our suppliers and customers who are a terrific resource for respectful environmental practices.

Community Development CPP supports local non-profits focused on the development of communities where we operate through corporate philanthropy and a donation matching program that encourages our employees to join us in giving back.

SUSTAINABILITY STRATEGY We make sustainable, inspired packaging that meets the needs of consumers and our planet. And we’re committed to making we love your product concept every step of the way.

INSPIRED PACKAGING At CPP, the core of our business and our impact is our sustainable, circular products. Inspired by consumers and the ever-evolving world around us, we create innovative, Paper based solutions designed with the future of the planet in mind. Our sustainability journey has been thoughtful and intentional as we

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have divested non-renewable, non-recyclable materials and focused on Paper based products. We design our packaging concepts by considering their full lifecycle and performance. This design approach creates solutions that not only meet our customers’ needs, but are made with the right renewable resources, recycled content, and circular properties to sustain our world. We focus our portfolio on the following: Paper based: Our products are made from nature, providing sustainable solutions consumers can feel good about.

Circular: Our packaging is designed to be recyclable and circular, supporting a future with less waste.

Renewable: Our raw materials are continuously replanted, supporting the future of healthy, biodiverse forests.

Climate-Conscious: Our products are made from trees, nature's most reliable resource for sequestering carbon and helping to tackle climate change.

Think Beyond Creativity Beyond our products, we are committed to making a brand world by empowering people, improving the planet through our operations, growing with our partners, and delivering profit and value for all. We are executing a sustainability strategy that is fully connected and integral to how we operate our business and thrive as a company. Our ingrained sustainability mind-set and approach to how we run our business amplifies our positive impact and our growth as a company.

As a vertically integrated company, we incorporate a sustainability mind-set into all steps of the manufacturing process, from the forest to the paperboard mill to the folding carton manufacturing plants, and at the end of use with the consumer. Our vertical innovation strategy sets us apart and allows us to develop unique solutions that consider each step of the process and how they interact. This sets us apart and allows us to develop unique solutions.

We understand that our impact on stakeholders — employees, communities, vendors are essential to our sustainability as a company, and we are committed to ensuring they are enriched by a lasting relationship with Genuine Progress Indicator [GPI]. As a concept-oriented manufacturer of innovative packaging solutions, CPP knows that success can be achieved by engaging in environmentally responsible activities, promoting stewardship of our natural resources, producing products that add value to our lives, and creating positive experiences for the people we interact with along the way.

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VISION 2025

CPP ION – Intellectual Opportunities Network

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WHY CPP? WHAT IS CPP VISION 2025?

For more than 15years, we’ve been at the forefront of designing, packaging, delivering superior customer experiences fueled by impactful insights, innovative products, and rapidly scalable services that ensure our customers’ products stand out on the shelves.

We design Vision 2025 with sustainable concept, follow the details CERTIFICATIONS AND SOCIAL RESPONSIBILITY Goal: our entire folding carton Progress manufacturing units in compliance 83% with cGMP, PPC, GMI, Social Under Audit Compliance Sedex Member Ethical Trade Audit (SMETA).

WASTE DIVERSION Goal: Drive out waste in all our Progress operations 92% of our carton manufacturing plants engaged in a waste diversion program SAFETY Goal: Continue progress toward aspirational target of zero incidents, ensuring that safety remains a top priority

Progress Recordable incident rate 0.81 in 2020

BEST-IN-CLASS CUSTOMER SERVICE At CPP, we develop a true understanding of the customer, as an organization, and as individuals, building a plan for delivering exceptional experiences. We know that every brand has a unique vision and unique challenges they’re facing. That’s why we bring to the table a range of innovative services and superior products that can be delivered at the rapid pace you need to succeed.

So, what could a relationship with CPP mean for your brand?

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WE’RE EXPERTS AT CONNECTING INSIGHTS FROM THE MARKET TO SPECIFIC PACKAGING FORMATS, CONCEPTS, AND INNOVATIONS. By identifying key trends and the impact they have on consumers, we help brands deliver leading-edge packing designs that stand out on the shelf.

WE CAN HELP YOU SETTLE ON A NEW FORMAT OR PACKAGING SOLUTION FOR YOUR PRODUCT. After that, we’ll guide you through our best-in-class on-boarding experience, designed to bring your new concepts to life and scale flawlessly up to commercial production.

AND WEWON’T STOP ONCE YOU’RE UP AND RUNNING. Our approach to continuous excellence ensures you’ll have ongoing access to new and evolving recommendations to improve your packaging and your supply chain.

Throughout your partnership with CPP, we’ll offer you fresh insights and innovations, packaging format improvements, and process enhancements — all designed to deliver more value to your business.

OUR PURPOSE: PRESERVING AND ENHANCING PEOPLE’S LIVES Our purpose is deeply rooted in our Philosophy and Core Values, and there is nothing more fundamental to what we do than preserving and protecting the product that our customers produce.

TRANSPARENT PARTNERSHIP We’ve forged partnerships with major brands across many markets—and when we say partnership, we mean it. Collaboration is the foundation of everything we do at CPP. We take the time to build an unparalleled understanding of each customer’s business, their needs, and the critical challenges they face.

MARKET INSIGHTS With market and product insight, we anticipate future needs with our partners.

Our comprehensive portfolio of services and capabilities is ready to help your brand grow and connect with consumers regardless of the hurdles your business needs to overcome today—or those you expect to encounter tomorrow. We take a proactive and flexible approach to resolving issues, sharing, and connecting critical market insights to packaging innovation.

GET IN TOUCH WITH US! Ready to learn more about all of the ways we can work together to connect your brand with consumers, drive sales, and uncover new opportunities for sustainable packaging? Reach out to the CPP team today

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