Our Diversified Business - Sealed Air 2010 Annual Review

Historically, our core organic growth of approximately 2% to 3% per annum reflected a number of core strengths including a broad portfolio of solutions, strong customer relationships, an extensive installed equipment base among our customers, and an expansive geographic footprint. Additionally, our businesses have leveraged secular trends to generate incremental product development and application opportunities.

Accelerating to a 5% to 6% unit volume growth rate through 2013 marks a change in how our businesses go to market and a revitalization of our R&D platforms.

The components of our growth strategy:

Secular Trends & Core Growth

Global protein demand / Middle class spend / Hygiene/safety focus / Convenience features

Developing regions are rising in their importance as export markets for high-quality food products from countries like the U.S., Brazil and Europe. As disposable incomes rise in developing economies, along with increased urbanization, consumers seek higher-valued food products such as: higher quality meats, dairy products and prepared foods. And, they seek these products increasingly within western-style supermarkets and in food service establishments - opting increasingly for centrally prepared and prepackaged products that provide greater hygiene, convenience, and expanded choice.

The demand for higher quality imported products and centrally prepared foods leverage the benefits provided by Sealed Air packaging. Quite simply, extended shelf life accommodates an expanded modernized food supply chain that enables consistency of quality, flavor, portion size, and greater oversight and traceability for food safety.

Movement of goods

Merchandise trade in volume terms (excluding price and exchange rate fluctuations) has largely continued to expand above comparable GDP levels in the last 10-years – suggesting ongoing strength in the demand for goods globally. As importers and exporters seek to minimize costs and maximize product safety and salability – there has been opportunity for growth for our businesses worldwide.

Aging populace / Wellness

As the growth of the world’s elderly population expands at the unprecedented rate of double the world’s birth rate – the number of older persons is now expected to exceed the number of children for the first time by 2045. As the elderly population increases and enjoys longer life expectancy, the frequency of doctor visits and medical procedures is also expected to rise. Additionally, the increase in chronic conditions such as asthma, diabetes and greater survival rates from cancers places greater demand for healthcare services, medical devices and pharmaceuticals globally. Serving these rising needs efficiently and with care offers an opportunity for our businesses.
Source: UN 2009

Conservation focus

Rising demands on finite fossil fuels, land, and potable water have placed greater awareness and emphasis on energy and material conservation. This has resulted in increased awareness and investments for diversified material streams that focus on annually renewable and recycled content, reduced water use, weight/size reduction and energy efficiency – leading to lower fossil fuel consumption. These trends are global in nature, impact an array of industries and offer numerous growth opportunities for our business.