WELCOME TO THE CPA QUARTERLY REPORT NEWSLETTER

The Contract Packaging Association's online quarterly newsletter is designed to keep all members of CPA informed about association growth, activities, events and initiatives.

Growth within the last two years has allowed CPA to take on projects it was not able to consider previously. This newsletter is intended to be both informative and entertaining. Newsletter goal is to greatly increase dialog and involvement with the association.

Another significant reason for the newsletter is to encourage Associate (supplier) Members to submit product information highlighting new, enhanced, changed capabilities of particular value to contract packaging members. With the complete rewriting of the CPA bylaws in 2005, the associate member category was created to encourage those with significant and growing business with contract packagers become members of the association. There are currently a dozen associate members.

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CONTRACT PACKAGING MAGAZINE ANNOUNCES 2007 SCHEDULE OF ISSUES
As the official publication for the Contract Packaging Association (CPA), it continues to help illuminate issues facing contract packagers, their suppliers and customers. Three print issues will be published in 2007: March/April, July/August and November/December. CPA members continue to receive a 15% discount on advertising rates. The publication is supplemented by a monthly newsletter offering timely contract packaging news, trends and new products. It does not conflict with this quarterly newsletter published by the Contract Packaging Association. Here we discuss association business, programs and initiatives - the internal workings of CPA.

Visit  www.packworld.com/cp for additional details. 

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THE DEVELOPMENT OF INFORMATION LEADING TO AN ANNUAL "STATE OF THE CONTRACT PACKAGING INDUSTRY REPORT"
Statistical Analysis Inc. (SAI) is now into phase one of research for CPA. You or another individual in your company received a survey within the last couple of weeks asking for your cooperation in completing a survey. This phase one effort is directed to CPA's current member companies. Phase two will survey all known contract packagers that are not yet CPA members.

IF YOU HAVE THE SURVEY AND HAVE NOT YET COMPLETED IT, PLEASE TAKE THE TIME NOW TO DO SO. WE NEED 100% COOPERATION TO PROVIDE THE MOST RELIABLE INFORMATION. Remember, SAI is bound to keep confidential individual company data. All information will be reported back to the CPA in a synthesized format to protect individual company data. The deadline remains Friday, December 22, 2006.

To date, more than half our contract packaging members have reviewed the questionnaire. About half of these have completed the survey. There have been zero "drop outs" - meaning everyone that started the survey has finished it before signing out of the system. Most questions are being answered. Two possible exceptions have to do with "annual revenues" (some numbers appear to be rounded off) and "gross profit margins" (some limited hesitancy in answering). It is expected, however, that this information will come easier once member and non-member contract packagers develop confidence in how carefully and confidentially their information is handled.

Please contact Kevin Armour, Vice President, at STRATEGIC ANALYSIS INC. with any thoughts or questions. He can be reached at 610 320-6100 or karmour@strategicanalysis.com. The web site is www.strategicanalysis.com.

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CPA WEB SITE VISITORS CONSIDERABLY HIGHER THAN LAST REPORTED
In our previous CPA Newsletter (August 2006), a chart tracking the association's web site activity was published. Information available at the time indicated an activity level of 650 unique visitors per week during the month of July. Further tracking, however, showed July to be unusually low compared with virtually any other month. At this point, we can only attribute the low number to July being frequently reserved for vacation time. Here, then, is the entire calendar year 2006 as a more accurate indicator of visits to www.contractpackaging.org. For the year, the site received a monthly average of 4,250 unique visitors. This works out to just over 1,062 per week, with July's downswing averaged into the mix. As we move into 2007, CPA is confident the web site will continue to be a valuable networking and informational resource.

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OCTOBER 2006 FINANCIAL STATEMENT SHOWS CONTINUING STABILITY AND RESOURCES
For the month of October, Revenues exceeded Expenses by $2,008 and was higher than budget $4,930. The difference between budget and actual is due largely to a hotel commission of $4,015. For the four months ended 10/31/06, Revenues exceeded expenses by $17,761, was higher than budget by $10,708 and lower than last year by $957.

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KITTING AND ASSEMBLY - THE HIDDEN MARKET
CPA Members (contract packagers) Associate Members (suppliers to contract packagers) and, particularly, those companies that buy contract packaging services should be aware of a significant contract packaging category not often discussed because it does not typically involve primary or even secondary packaging nor is it by definition market specific. We're talking , of course, about kitting and assembly. This service activity is a capability of a number of Contract Packaging Association members. It may well be the single most required service offered. This because it is difficult, if not impossible, to pull together the proper mix of temporary labor required to get a very important job done on time. Here then are typical capabilities:

• Large, flexible workforce
• Value-added services including packaging, warehousing and shipping
• Modern and well-equipped facilities
• Quality/cost-competitive services
• Typical services offered: product/kit assembly, point-of-purchase displays, shrink wrapping, poly bagging, skin carding, re-work, inspection and sorting

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THE PACKAGING SUMMIT 2007
An aggressive marketing plan is being implemented to deliver many new faces to the event as well as develop stronger relationships with existing attendee customers. Specific activity includes:

• DISPLAY ADVERTISING IN THE PACKAGING BUSINESS PRESS: Six publications beginning in October 2006.
• PRINT DIRECT MAIL PROGRAM: Multiple mailings to 30,000 plus packaging professionals beginning in November 2006.
• REGULAR E-MAILINGS TO THE PACKAGING SUMMIT DATABASE.
• INSTITUTE OF PACKAGING PROFESSIONALS (IoPP) COOPERATION: Continue producing highly successful Packaging Summit Conference, facilitate the World Packaging Organisation's Annual Meeting (the first time in North America in more than a decade), and IoPP's AmeriStar Awards Reception.
• ATTENDEE DEVELOPMENT: Including personal meetings, phone, e-mail print mailings, follow-up on responses from display advertising in the packaging business press.
•  ONGOING PUBLIC AND MEDIA RELATIONS: News releases written and released to all media that would be interested in the content of the release. In most cases, the releases will focus on meaningful differences between this expo and alternatives.
• GREATER SUPPORT FOR EXHIBITOR MARKETING EFFORTS: Including unlimited FREE PASSES, basically for customers and prospects of exhibitors.
• NEW MEDIA CONSIDERATIONS: Including Search Engine Optimization and an interactive www.pkgsummit.com that will include an RFQ section.

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CPA WELCOMES NEW MEMBERS
Since our last Quarterly Newsletter in August, the following companies have joined the Contract Packaging Association:

• Alcoa Flexible Packaging
• Auro Applicators & Assemblers, Inc.
• Buffalo Blends, Inc.
• Chapin Packaging LLC
• Color Craft Label Company
• Commerical Cartage LLC
• DigiSource International
• Heritage Labs
• Kane is Able, Inc.
• M.P.H. Logistics LLC
• Mint Assembly Inc.
• Pflug Packaging
• Quality Packaging/ProPac
• R.A. Jones & Company, Inc.
• Sensible Packaging Solutions
• TricorBraun
• United Citrus Products Corp.
• World Contract Packaging

 Welcome to the club!

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CONTRACT PACKAGING MAGAZINE LOOKING FOR CPA MEMBER INPUT
In 2007, Contract Packaging magazine plans a significant feature article that will explore the role of contract packaging in the continuing ascent of private-label brands. A new report from the Private Label Manufacturers Association finds that not only is private label continuing to grab more market share from the national brands in food and beverage, but now the "halo effect" is spreading into growing p/l success in non-grocery categories, especially health & beauty aids, household cleaning products, and office supplies.

Contract Packaging magazine is looking to CPA members and their p/l product manufacturing customers for input into this article.

If interested in participating in the article, contact Jim George, Editor-in-Chief, Contract Packaging magazine, at 630-897-7158 or e-mail george@packworld.com.

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