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Packaging Flexibility Project for Pop Tarts and Nutri Grain

Enhancing production capacity for Variety and Club Packs while increasing overall packaging flexibility. Includes capital investment, cost savings, and planned start-up. Scope covers machinery upgrades and additional workforce implications.

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Packaging Flexibility Project for Pop Tarts and Nutri Grain

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  1. PROJECT OVERVIEW The overall objective of the project is to provide the capability to produce Variety and Club Packs for Pop Tarts and Nutri Grain while increasing the overall packaging flexibility of all lines. • CAPITAL $16.3MM • OTC $ 1.5MM • SAVINGS $ 5.5MM • FINAL START-UP 11/11/13

  2. PROJECT KOWABUNDLE 48 ct. Pop Tarts 2 sku’s: 2 flavor – FSB & FBSC 3 flavor – FSB, FBB & FC 12 ct. Retail Cartons .6 pts of Gross Margin .6 pts of Gross Margin 7.9 pts of Gross Margin 48 ct. Nutri Grain 1 sku: 3 flavor – Apple, Cinnamon & Blueberry 16 ct. Foodservice Cartons 36 ct. Pop Tarts 2 sku’s: 1 flavor – FSB 1 flavor - FBSC 12 ct. Foodservice Cartons

  3. CAPITAL SCOPE • LINE 3 – POP-TART • Converger & Conveying, 2 Casepackers, Case Handling • LINE 1 – POP-TART • Overhead Carton Conveying • Converger, 2 Casepackers, Case Handling • LINE 2 – NUTRI GRAIN • 2 Casepackers • VARIETY PACK • Totes and Sprinkler System Upgrade • Tote Loading Robotic System • Tote Unloading Robotic System • Casepacker • Palletizer and Stretchwrapper • POWER SYSTEM UPGRADE

  4. OTHER PROJECT IMPLICATIONS • 14 Additional full-time headcount • Realignment of many jobs / roles • Robotics • Work in Process • Live Loading • Pop Tart Network Changes

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