Agenda - Corrugated Packaging Council

MEMOTo:From:CC:Carl Bohm (Weyerhaeuser), Dennis Colley (IP), Bart Doney (T-I),Charles Feghali (Interstate), Christian Fischer (GP), Tom Hassfurther(PCA), Steve Strickland (SSCC), Ray Tennison (Simpson)Dwight SchmidtJohn Caplice (SSCC), Jack Cooper, Doug Endicott (T-I), Cathy Foley,Brian O’ Banion, Dave Reiser (G-P), Brian Smith (Weyerhaeuser),Jim Southwell (PCA), Keith Townsend (I-P), Tom Walton (PCA)Cheryl Young (Cypress Communications)Date: April 4, 2007Re:CPA April 18, 2007 Meeting AgendaCorrugated Packaging AllianceApril 18, 2007Ritz-Carlton Grande LakesOrlando, FL1:45 – 5:00pmNOTE: The meeting will be chaired by Dennis Colley, co-chair of CPA andChairman of the AF&PA Kraft and Containerboard Sector. The first portion ofour meeting will be a combined meeting with the AF&PA Sector group to discussSustainability and potential action items.1. Roll Call & Introduction of All Attendees2. Antitrust Guidelines3. Financial Update2006 Actual (see Attachment A)2007 Budget & YTD Expenses4. Review of Sustainability Activity based on input from CPA Action Team,the joint AF&PA and FBA Sustainability Committee and the FBA Board.• Current Reality• Wal-Mart Influence• Action Items9465 Counselors Row • Suite 200 • Indianapolis, Indiana 46240 USA• PH: 317.805.4750 • FX: 317.805.4723

MEMO5. Recommendations for CPA1. Support and fund the enlistment of “third parties” to promote positivecorrugated/sustainability messages.2. Determine best method to acquire new data on GHG.3. Sustainability Committee to identify “holes” in data for storyline, thengauge CPA interest in addressing/filling information gaps.4. Following the development of a sustainability story line consider fundingan in-depth communication plan.6. Funding Implications for RecommendationsBreak (AF&PA Containerboard & Kraft Sector Meeting Adjourns)Continuation of CPA Meeting7. Approval of 5-2-06 Meeting Minutes (see Attachment B)8. Review of Action Items from 5-2-06 Meeting Minutes9. Review of International Competing Materials Meeting and ICCA PlasticsPenetration Work Group10. Review of CPA Activity Areas based on CPA Action Team input1. Competing Materials – Produce• Current Reality• Action Items2. Competing Materials – Case Ready Meat• Current Reality• Action Items3. Wax Alternative Protocol• Current Reality• Action Items4. RFID• Current Reality• Action Items11. New Action Item Review12. Next meeting13. Adjourn9465 Counselors Row • Suite 200 • Indianapolis, Indiana 46240 USA• PH: 317.805.4750 • FX: 317.805.4723

DRAFTAmerican Forest & Paper AssociationStatement of Revenue and ExpenseCRATE - 964Period Ended December 31, 20064/5/2007, 3:13 PM964 CRATE - 964Current Month YTD YTD YTD Original Year End AnnualActual Actual Projected Difference Budget Projection DifferenceRevenue4001*,4Member Dues - 31,998 - 31,998 - - -Total Revenue $ - $ 31,998 $ - $ 31,998 $ - $ - $ -Payroll Expense500** Salaries - - 11,000 (11,000) 11,000 11,000 -Total Payroll Expense $ - $ - $ 11,000 $ (11,000) $ 11,000 $ 11,000 $ -Total Direct Expense $ 295 $ 114,413 $ 181,000 $ (66,587) $ 181,000 $ 181,000 $ -Total Expense $ 295 $ 114,413 $ 192,000 $ (77,587) $ 192,000 $ 192,000 $ -Change in Net Assets $ (295) $ (82,415) $ (192,000) $ 109,585 $ (192,000) $ (192,000) $ -424,306 Carryover Fund Balance341,891 Current Fund Balance1

MEMOTo:From:CC:Carl Bohm (Weyerhaeuser), Dennis Colley (IP), Bart Doney (T-I),Charles Feghali (Interstate), Christian Fischer (GP), Tom Hassfurther(PCA), Ray Osmus (SSCC), Ray Tennison (Simpson)Dwight SchmidtDave Boarman (T-I), Jack Cooper, Cathy Foley, Rachel Kenyon(Weyerhaeuser), Dana McCurry, Brian O’ Banion, David Reiser G-P,Keith Townsend (IP), Tom Walton (PCA)Date: May 22, 2006Re:CPA May 2, 2006 Meeting MinutesCorrugated Packaging AllianceMay 2, 2006Four Seasons HotelMiami, Florida1. Co-Chairman Tom Hassfurther opened the meeting and introduced severalguests; namely, Kasia Scoggins, Coordinator of Competitive Materials forFEFCO, Rich Soderberg, FBA Technical Director and Terry Van Brackle,Project Manager for ICPF.2. Antitrust Guidelines were delivered by Jack Cooper, CPA’s legal counsel.3. The Committee approved the 9-28-05 Meeting Minutes that had beenpreviously distributed.4. Review of Action Items from 9-28-05 Meeting MinutesA report was given on the following Action Items:• The Executive Director is to prepare a summary report for CEO’s andother industry audiences of the 4 years of CPA activity including ascorecard of finances and accomplishments. (Completed at thismeeting.)• The Executive Director, in conjunction with counsel andcommunication consultant will prepare a press release for the waxprotocol that will be sent to both sponsors for simultaneous forwardingto their members. (Completed 10-4-05)9465 Counselors Row • Suite 200 • Indianapolis, Indiana 46240 USA• PH: 317.805.4750 • FX: 317.805.4723

MEMO• All updates to the protocol on the website will be made prior toissuance of the press release. (Completed 10-3-05)• All responses to public comments on the wax protocol not currentlyincluded on the website should be posted as soon as possible.(Completed 10-3-05)• Recall FBA request for current wax data. (Completed 9-28-06)• Counsel to make informal contact with RPCC requesting they andmembers stop improper usage. Also, inform them that the CPA willnot waive the confidentiality requirement of our 2003 Compatibilitystudy. (Jack Cooper sent a letter to RPCC counsel in early Octoberand received a response indicating the RPCC would respect allapplicable laws relating to comparative advertising.)• Join the Sustainable Packaging Coalition and keep members apprisedof activities and methods to benefit. (Unable to join due to change inpolicy to not allow association memberships.)• Explore wax to energy and other uses recognizing that not all wax canbe replaced in the short-term. (No activity)• Develop proactive retailer message around the wax alternativeprotocol and communications program. (Completed 11-5-06)5. Executive Director’s Report & Review of Progress Against 2005DeliverablesAll deliverables were reported as having been completed.6. Financial Update2005 Actual Expenses came in as projected at $907,000, leaving a carryoverof CPA funds at $360,000.2006 Approved Budget is $178,000 and YTD Expenses are as projected.7. Four Year ReportThe Executive Director made a presentation summarizing the past four yearsof CPA activity. The report showed that all objectives had been accomplishedwith less expenditure than had been authorized. The in-roads projected forRPCs was halted at about 5% of produce industry volume and that 470,000tons of conversion was avoided due to CPA data collection and memberactivity. It was requested that a press release be prepared reporting this goodnews.The CPA will continue its work on competing materials and overall industryissues funded by the $360,000 of assessments already collected throughAF&PA Containerboard members. The full report will be emailed tosponsoring organizations for distribution to their membership.9465 Counselors Row • Suite 200 • Indianapolis, Indiana 46240 USA• PH: 317.805.4750 • FX: 317.805.4723

MEMO8. Current Reality of Competing Materials♦ RPC Ownership Change – The long awaited sale of CHEP’s RPCbusiness was finally accomplished with its recent sale to IFCO. Thepurchase now makes them the largest RPC Pooler with an estimated 55%share of market. Makes them the largest with a claim of 55% marketshare. Fred Hepenstel, new President of IFCO is a produce industryveteran and is very bullish on RPC future…in their news release of thepurchase he predicts a 60-70% RPC produce market share in 10 years.♦ Retailer Updates:Wal-MartA recent visit to Bentonville found the produce segment concerned overfinancial viability of RPCs. They are currently giving volume to Poolersin areas where corrugated is better (i.e. strawberries) just to help recoverinvestments Poolers have made and provide revenues in as many areas aspossible. However, they are converting all soft fruit, apples, and mostgrapes to CCF due to lack of RPC availability to properly service thesemarkets. When questioned about corrugated industry initiatives theyaffirmed interstackability of CCF and RPCs continued to be no problemand while they appreciate the work that went into the Wax AlternativeStandard effort they have eliminated ice from their produce shipments.KrogerA January tour of their Midwest perishables center showed no RPCspresent – limited CCF as well. However, the RPCC in Februarydisclosed an RPC trial was ongoing at a major retailer and a March callto Reggie Griffin confirmed an RPC test at Ralph’s division in one DCwith 20 green room items. We offered Harry Turvey and Full-Disclosuresoftware assistance but no interest at the current time. Reggie positionedtest as “routine” follow-up to one 5 years ago…currently there is nocommitted completion date.Case Ready MeatWal-Mart is the dominant player and they are starting to drive (demand)testing and change to RPCs. Their near-term focus is on pork and beefmuscle cuts and grinds. Protein suppliers of CRM are resistant but willmove if pressured. Although their direction is clear it is unclear if Wal-Mart’s change to RPCs will cause a total supplier packaging change. Theexact style has not been finalized but the Tosca bale-arm RPC is beingused by Kroger in their closed loop system.The Legislative LandscapeCALIFORNIA Topic: RECYCLING/PACKAGINGSB 1573, which directs manufacturers to eliminate “excesspackaging” and encourages manufacturers to establish take-back programsfor their products and packaging, is scheduled to be heard in the Senate9465 Counselors Row • Suite 200 • Indianapolis, Indiana 46240 USA• PH: 317.805.4750 • FX: 317.805.4723

MEMOEnvironmental Quality Committee April 24. In addition, SB 1573 wouldencourage use of reusable, returnable, refillable and recyclable packaging,use of compostable packaging, reducing toxicity and establishing specificpercentages of recycled content material in packaging. The bill wouldapply not only to primary packaging, but secondary, tertiary and transportpackaging as well.AF&PA is participating in a broad-based coalition to oppose the measure.9. Wax Replacement ProtocolThe Executive Director reported that there has been little retailer activitynoted in “pulling through” wax alternatives. Albertsons and Publix are thenotable exceptions. In the meantime, Global Green (with EPA backing)continues to sponsor the Recyclable Transfer Packaging group made upprimarily of Wax Alternative treatment manufacturers. They havedeveloped a new website to assist finding recyclable solutionshttp://beta.recyclabletransferpackaging.org. They refer to our protocol butthey currently have no limitations on claims of recyclable solutions(concern over their liability.) The Committee felt that while we couldn’tcontrol their content we could make them use a disclaimer regarding thesesolutions aren’t necessarily recyclable and have them refer to ourStandard.---(A RECENT REVIEW INDICATES THAT THEREFERENCE TO OUR PROTOCOL HAS BEEN DELETED)---Concern was also expressed by Rich Soderberg, FBA Technical Director,that there are only 5 certifications on file at FBA from 3 companies, withno treatment producers having filed as yet. The committee said theywould take this information back to their company’s and asked that a newreport be issued reflecting activity on July 1 st .10. SustainabilityThe committee agreed that Sustainability was coming at us fast and thatthe industry needed to be proactive given our positive environmentalstory. They also adopted the following Recommended Actions:1. Adopt Sustainability as an overarching industry issue the CPAshould support2. Endorse the formation of an industry-wide ad hoc committee todefine the issue and formulate a corrugated industry position3. Cooperate with a broad-based international effort through ICCA4. Allow CPA funds (following approval by CPA committee) to beused if direct cost support is required9465 Counselors Row • Suite 200 • Indianapolis, Indiana 46240 USA• PH: 317.805.4750 • FX: 317.805.4723

MEMO11. Other ItemsKasia Scoggins of FEFCO reported on their renewed program to addressthe inroads of RPCs in Europe. She also displayed their current adcampaign attacking RPCs lack of hygiene in distribution (see attached ad.)The CPA will continue to work closely with FEFCO as well as ICCA toassure our efforts are well coordinated.12. Action Item ReviewThe following action items were generated as an outcome of this meeting:♦ Obtain Wal-Mart’s feedback on the IFCO purchase of CHEP andIFCO’s problems with illegal aliens.♦ Develop and send recyclability disclaimer to Recyclable TransferPackaging group for inclusion in their website.♦ Notify committee of protocol certification filing activity on July 1 st .♦ Investigate Wal-Mart’s comment on heavy metals in corrugatedcoming from China.♦ Email committee members for names for industry ad hoc sustainabilitycommittee.♦ Have ad hoc committee dovetail with AF&PA and ABI to assureconsistent messages.♦ Send AF&PA recycling information to Bill McDonough and AnnJohnson.♦ Pass along all sustainability information to ICPF for distribution toschools and students as well as on their website.♦ Report all progress, issues and activity to Containerboard ExecutiveCommittee at their 9/21/06 meeting rather than having CPA meetagain.♦ Obtain Hygiene studies from FEFCO for examination.♦ Release FEFCO ads to the trade press and assist them in spinning thetype of story we’d like to see.♦ Set up communications system through CPAAT to generateMarketplace reality report for fall meeting.♦ Prepare and distribute a press release reporting the CPA’saccomplishments.♦ Make the four year report available for sponsors to distribute to theirmembers.13. Next meetingThe next planned meeting of the CPA Committee will be on Wednesday,April 17, 2007 in conjunction with the co-located AICC, AF&PAContainerboard Executive Committee and FBA meetings in Orlando, FL.9465 Counselors Row • Suite 200 • Indianapolis, Indiana 46240 USA• PH: 317.805.4750 • FX: 317.805.4723