Market Development AnalysisMarket Development Analysis

Prepared for the exclusive use of Shelburne Plastics

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• Gen 1 Starch based plastic (PLA)…mostly corn-based product

• Gen 2 Oxo-biodegradable conventional plastic

• Gen 3 Microbiodegradable conventional plastic.

Evolution of Biodegradable Plastic

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• Made and promoted by corporate giants that have significant market influence, such as Cargill, Inc., but it has drawbacks.

• Product limitations– Based on a common food source. Significant adoption of PLA will

significantly upset the existing corn marketplace.

– It imparts an off taste to water when used for water bottles

– It has a short shelf life.

– It is not easily recyclable and accepted in only in controlled situations

– It decays so fast in many landfill environments that it generates methane before the landfill can be capped to tap the methane releasing greenhouse gases.

PLA, corn-based plastic

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• Light naphtha-based plastic (Light naphtha is a highly volatile faction of crude oil that cannot be made into gasoline, diesel, fuel oil, or jet fuel.**)

• Most widely adopted in Europe• Offers advantages over PLA

– It is invulnerable to water.– it doesn't compete for limited the grain supply– it is stronger, less expensive, and made from an otherwise useless industrial byproduct

• Limitations– Biodegrade requires a specific environmental factors-oxygen and one of the following

three circumstances-heat, UV light, or mechanical stress.– When products made with oxo-biodegradable additives enter the recycling stream in

large numbers, the resulting plastic could have a short lifespan if placed in sunlight.

Oxo-Biodegradable Plastic

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• Light naphtha-based plastic, with an additive (ENA or Earth Nurture Additive,)

• All the benefits of oxo-biodegradable plastics as well as:– It has the same shelf life as regular plastic– Unlike PLA and oxo-biodegradable plastic, it does not biodegrade until it is in

the presence of soil micro-organisms in either aerobic or anaerobic environments.

– Biodegradation is delayed long enough that there is time to cap the landfills, so the methane is burned off or even used to generate electricity, as is being done in almost 500 US land fills currently.

– This generation is recyclable and completely non-toxic to people, plants, and animals, and is made of ingredients approved by the FDA for food contact.

Microbiodegradable Conventional Plastic

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Market Size

$176 million

$409 million

The Challenge: Identify customers where ‘Green’ is a value to the consumer

The Fact: Packaging is a commodity and price is key buying criteria

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Green Mountain Coffee Sustainability Initiatives

• Responsible energy use• Focus on renewable energy• Reducing thermal footprint• Reducing carbon footprint

• Waste reduction

• Packaging initiatives• Packing film- In 2007, GMCR replaced a layer of petroleum-based

material with a layer of PLA in the packaging film used for our Newman’s Own® Organics line of coffees

• The Ecotainer- Working with International Paper, we developed an environmentally friendly alternative to conventional paper cups. Paper comes from sustainably managed tree farms and the liner is made from a corn-based polymer which breaks down under proper composting conditions.

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Keurig Sustainability Policy

Sustainable Packaging…..”finding a more environmentally-friendly approach to this packaging challenge is a big priority for us. We are working on a few different fronts to improve the environmental characteristics of the K-Cup® system, as well as to mitigate its impact. “

Here’s what Keurig is doing•…actively researching alternatives to the the K-Cup® Portion Pack’s petroleum –based materials.

•…conducting a Life Cycle Analysis to help us understand the overall environmental impact of the K-Cup® Portion Pack.

•…working to identify the right definition of "environmentally friendly“ for all our packaging, including the K-Cup Portion Pack.

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Cabot Creamery

At Cabot Creamery, we understand “Sustainability” to be "living within our means and ensuring the means to live.” Our fundamental approach to stewardship and social impact is based on the triple bottom line of social, environmental and economic impacts.

Community Commitment• …committed to helping communities where its dairy products are sold.• …donates product to food banks, soup kitchens and shelters.• …donates cash to charities and non-profit organizations.• …through sponsorship of local and regional events.• …created Ag in the Classroom, an educational program for elementary students throughout New England to teach children about agri-culture.• …committed to green and clean, Cabot initiated Vermont’s

first polystyrene and polypropylene recycling program.

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Other Yogurt Companies

Company Location Sustainability PolicyColombo Inc  (General Mills) Methuen, MA Yes

Dannon CO Inc   White Plains, NY Yes

Erivan Yogurt (Erivan Dairies) Oreland, PA Yes

Fage Usa Corp Johnstown, NY Yes

Noga Dairy Inc (Dairy Delite) Farmingdale, NY NoNorth Lawrence Dairy Inc

(Breyer's Yogurt Company) North Lawrence, NY Yes