1. Purity TM FG Webinar for the Beverage Segment September 2009 TM Marque de commerce de Petro-Canada - Trademark
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11. The PURITY FG Solution. PETRO-CANADA CONFIDENTIAL When it comes to beverage plants, H1 is the standard. PURITY FG meets all NSF and CFIA requirements for incidental food contact PURITY FG. Plant Tough. Food Safe. Most PURITY FG lubricants also have Star-K and Halal letters of compliance. NSF Classifications CFIA Classifications H1 Incidental food contact H2 No contact with food 3H Release Agents HT1 Acceptable for use as a heat transfer fluid where there is a possibility of incidental food contact n Incidental/accidental food contact n1 General oils and greases (not food grade) n2 Hydraulic oils (food grade and non food grade) n3 Protective Oils t1 Refrigerant/Heat Exchanger Agents (General)
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14. The PURITY FG Solution. PETRO-CANADA CONFIDENTIAL PURITY FG. Plant Tough. Food Safe. Customer Need Our Solution Giving the Customer: Performance: - Constant Operation - Harsh environment Plant Tough lubricants with excellent capabilities designed for long fluid life and effective equipment protection Increased Uptime and Lowered Maintenance Costs due to smooth operation Safety: - Risk of contamination - Strict Regulations H1 lubricants that are NSF and CFIA registered for use in applications where Incidental Contact with Food is possible. Peace of Mind Brand Protection Cost Pressures: - Wide variety of machinery Inventory Consolidation One Supplier lowers inventory costs Key Products: - Seamer fluid - Gear fluids - Greases - Hydraulic oils PURITY FG Seamer-E Fluid PURITY FG EP, Synthetic EP Gear Fluids PURITY FG2 Clear Grease PURITY FG AW Hydraulic Fluids Premium Food Grade lubricants that are Plant Tough and Food Safe.
28. PURITY FG Seamer-E Fluid PETRO-CANADA CONFIDENTIAL PURITY FG Seamer-E fluid is a door opener to the beverage industry! PURITY FG. Plant Tough. Food Safe. ADVANTAGES PURITY FG Seamer-E fluid is specifically designed for high-speed continuous lubrication seaming units, providing excellent performance in: • System cleanliness • Providing strong load carrying characteristics • Outstanding water control • Designed to work with ceramic bearings • Excellent corrosion inhibition PURITY FG Seamer-E fluid is registered with NSF as H-1 and CFIA registration is pending. The performance of PURITY FG Seamer-E fluid is recognized by Angelus.
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33. PETRO-CANADA CONFIDENTIAL Purpose of Air Removal The deterioration of the quality of canned beer, soft drinks and other products is highly influenced by the quantity of oxygen contained in the head space of the can after closure. Since oxygen has a marked influence on the flavour, odour, colour, clarity, stability, and vitamin retention of some products during storage, its removal prior to sealing is advantageous. Air removal by under cover gassing is used primarily by the brewing and soft drinks industries. The products of the brewing industry such as beer, and other similar beverages are under cover gassed to minimise the amount of residual air in the sealed container. The oxygen in this residual air left in the container can produce oxidation of the beer and affect its flavour and contribute to the breakdown of the products stability.
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39. PETRO-CANADA CONFIDENTIAL PURITY FG Seamer-E Fluid Typical Performance Data Appearance Clear Density, kg/L @ 15°C (ASTM D4052) = 0.884 Viscosity, (ASTM D445) cSt @ 40°C = 130.5 cSt @ 100°C = 14.9 Viscosity Index (ASTM D2270) = 116 Flash Point, COC, (ASTM D92) °C = 243 Pour Point, (ASTM D5950) °C = -15 Water separability, 82 °C , mL (min.) (ASTM D1401) = 0-0-80 (60) Forms a tight emulsion. Rust prevention (ASTM D665A) = Pass 4-Ball Wear, mm (ASTM D4172) = 0.50 4-Ball EP Weld Load, kgf (ASTM D2783) = 200 Falex Pin-and-Vee Block method B, failure load, lbf (ASTM D3233) 2000 NEW TECH DATA (IM 8048E) & MSDS
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42. Existing PURITY FG Beverage Customers. PETRO-CANADA CONFIDENTIAL Companies worldwide are realizing the benefit of PURITY FG
Editor's Notes
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02/04/10 PETRO-CANADA CONFIDENTIAL Why are we using this format? In the past, we have provided a large amount of Marketing collateral. This support is focused on: PODs Sales Sheets Tech Datas Testimonials Product Features Feedback from you has centered on further building sales capability through continued training. We have all of this material; however we are not always making proper use of it. Commonly, we talk about our products to the customer, try to replace products they are using, and attempt to explain the benefits of switching to our products. This is not the process we wish to pursue. What we would like is a better understanding of our customer’s needs and how our products might create value for them. We had neglected to provide a campaign or sales execution strategy, a sales process, and training to assist you in making use of this collateral in the best way possible to create value for your customers by providing solutions for them. What we are attempting to do here is refine sales execution to include our Sales Process in a campaign you can use to accelerate sales, achieve your potential, and increase your revenue.
02/04/10 PETRO-CANADA CONFIDENTIAL Market Trends: Food safety / regulatory compliance remains the top concern of the food / beverage processing industry (37%). Decisions for lubricants driven by two factors: location of the equipment components in relation to the food processing level company policy Industrial oil and fluid consumption in the beverage industry continues to grow. Four of Top 10 Food Processing Companies in North America are Beverage Companies Nestle (1), (PepsiCo (3), Anheuser-Busch (5), Coca-Cola (10). The beverage segment uses special lubricants for low temperature operations of drives, bearings and chains. Additionally, food grade lubricants are needed where contact with the product may occur – for example on valves for filling and dispensing equipment, centrifuge bearings and other applications such as bearing and cylinders, as well as wherever the lubricant has the potential for incidental contact with the beverage. What are companies doing to address safety? 83% mention employee training, 51% HACCP implementation, Upgrading equipment for enhanced sanitation (21%) Pepsi is Pepsi, FritoLay, Gatorade, Tropicana, Quaker. MillerCoors DelMonte MolsonCoors Cott Labbatt’s Cadbury Schweppes
02/04/10 PETRO-CANADA CONFIDENTIAL As part of its strategy to grow in key markets, the company recently announced plans to invest $1 billion over the next four years in China, PepsiCo's highest priority growth market. Pepsi reports 4% growth in Q2 2009 Market Trends: Highly Recession resistant industry. The beverage segment uses special lubricants for low temperature operations of drives, bearings and chains. Additionally, food grade lubricants are needed where contact with the product may occur – for example on valves for filling and dispensing equipment, centrifuge bearings and other applications such as bearing and cylinders, as well as wherever the lubricant has the potential for incidental contact with the beverage. Pepsi is Pepsi, FritoLay, Gatorade, Tropicana, Quaker. As part of its strategy to grow in key markets, the company recently announced plans to invest $1 billion over the next four years in China, PepsiCo's highest priority growth market. Pepsi reports 4% growth in Q2 2009 Environmental Concerns were listed as a top concern by 7.1% of food / beverage companies. Plant quality auditors have difficulty determining which equipment locations should be considered as potential sources for incidental contact between the lubricant and the food/beverage they are manufacturing. Pepsico Nestle Diageo Anheuser-Busch Coca-Cola Dr Pepper / Snapple
02/04/10 PETRO-CANADA CONFIDENTIAL 24/7 operations Most plants follow a preventative maintenance schedule but do not have extensive used oil analysis, vibration monitoring, or oil purifiers employed. Trend is that the equipment is becoming more complex and the equipment speeds are increasing, resulting in increased output. What are companies doing to address safety? 83% mention employee training, 51% HACCP implementation, Upgrading equipment for enhanced sanitation (21%) For example the Pepsi bottling plant processes over 1200 cans/minute. The modern plants run at high speeds and optimal outputs. Downtime can be disastrous – costly and often means short shipments to customers with just in time inventory requirements. Regulatory / safety Keep operations running – Product Performance Product Availability
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02/04/10 PETRO-CANADA CONFIDENTIAL Messages : There are 4 key reasons why “More is Possible” with our PURITY FG lubricants line First, we have one of the most compelling food grade product offerings Our product portfolio currently includes the following We’ve continued to invest in this line and have launched 9 new products in the past 3 years
02/04/10 PETRO-CANADA CONFIDENTIAL Mention beer approval and 00 application.
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02/04/10 PETRO-CANADA CONFIDENTIAL Performance is still the main decision factor for customers. Focus on promoting performance of EcoSia line of products first and then its environmental characteristics EcoSia products deliver performance while helping to meet customers’ needs to reduce impacts on the environment Spans a number of industries: construction, forestry, mining, agriculture, drilling, food processing, and general manufacturing Benefits Opportunity to target customers in a wide variety of segments that have a growing demand for environmental products Easier for customers to identify those products that help to meet their environmental goals without compromising performance Offers a credible brand built on internationally recognized testing methods Growing demand in specific industries- needs Customers are increasingly concerned about the impact of their operations on the environment Need to reduce environmental impact of their operations without compromising performance Need to reduce disposal costs and clean-up costs Need to address regulatory and social pressure to help reduce the impact of customers’ operations on the environment Need for positive reputation (this is mostly true for distributors; customers are more concerned about the impact to their operations) Important notes: All products under the EcoSia brand were evaluated to ensure that it met the EcoSia inclusion criteria Inclusion within the EcoSia brand does not replace legal or regulatory testing that is required in specific jurisdictions or by regulatory authorities. EcoSia products were selected from Petro-Canada’s existing product portfolio (formulations or performance did not change for existing products) There is opportunity in the future to include more products under the EcoSia brand There may be other Petro-Canada Lubricants products that exhibit characteristics that minimize impact on the environment such as products that are energy efficient and support renewable power sources and are free of heavy metal. Products that exhibit these characteristics but don’t fall under EcoSia because they don’t meet the criteria, can still be promoted to have the features and benefits that help minimize impact on the environment; however they cannot be promoted as falling under the EcoSia brand. As certain jurisdictions have differing criteria for environmentally-responsible products, EcoSia will not be mentioned on product labels or packaging. The EcoSia brand will also not be mentioned on product specific materials including Tech Datas and Sell Sheets. This will allow us to cater globally to all customers. If a customer or distributor wants to promote EcoSia, it is recommended they use the EcoSia Selling Tools including the EcoSia brochure. Criteria for Inclusion Inherently or readily biodegradable based on component or product data obtained using the Organization for Economic Cooperation and Development (OECD) 301B testing guideline, or OECD 306 testing guideline (Biodegradability in Seawater). Readily biodegradable is defined as rapid and complete mineralization of the substance, with more than 60% of the product biodegrading within 28 days (OECD 301B or OECD306). Inherently biodegradable is defined based on the results of OECD 301B biodegradability studies where more than 20% and less than 60% of the substance biodegraded within 28 days. Although the EcoSia line of products is biodegradable according to these guidelines, customers should take care in disposing of the products in an environmentally-responsible manner. Not acutely toxic to fish, daphnia or algae according to the United Nations Globally Harmonized System (GHS) criteria (evaluated using OECD 201-203 test data or equivalent. Eco-Toxicity is evaluated as the following. All products had to pass the fish, daphnia and algae test to be classified as not environmentally toxic. 96-hour Fish Toxicity LC50>100 mg/L (based on OECD 203 test data or equivalent); 48-hour Daphnia EC50 > 100 mg/L (based on OECD 202 test data or equivalent); and 72-hour Algal IC50 > 100 mg/L (based on OECD 201 test data or equivalent). Competitive Advantage Most competitors have an environmental brand (Total, Shell, Exxon, Conoco/ Phillips and Chevron. However, the products included in the brand are limited and do not span across as many categories and industries as EcoSia. Also, EcoSia is credible and clear on how we evaluated its environmental impact; whereas, based on information found on the competitor’s website one can conclude that for most of the competitor environmental brands, the criteria is not very clear or varies by product. EcoSia provides clear criteria on how products are evaluated to determine their impact on the environment, which addresses customers’ need for a credible brand. Petro-Canada products offer performance benefits while helping to reduce impacts on the environment. For example, ENVIRON™ delivers longer-lasting performance compared to competitive vegetable oil-based and conventional hydraulic fluids. Some of the competitor environmental products derive from vegetable-based oil or esther, which means that in some cases those products do not offer the performance benefits of mineral oils. EcoSia spans a wide variety of products and industries. Can offer a bundle of product solutions to specific industries. EcoSia products can offer additional environmental benefits. For example, ENVIRON can reduce drain intervals which means less waste, hence a reduced impact on the environment; it also offers energy efficiencies with multi-grades, is recyclable and free of heavy metals.