Packaging Management Update 05-05-08



May 5, 2008 -

Ben Miyares' Packaging Management Update®

Ben Miyares' Packaging Management Update®

A weekly summary of packaging business and technology developments

Hot-filled, microwaveable stand-up pouches offer “clip, pop & pour” pasta sauce prep


Microwaveable, 13.5-ounce, stand-up pouches for Ragu Fresh & Simple and Bertolli brand pasta sauces from Unilever, Englewood Cliffs, NJ, reduce sauce preparation to a simple, 3-step, 90-second process.

Economics and convenience are the drivers of this new package now appearing on grocery shelves next to the glass jars that are standard fare for this product category, and peg displayed via Do-It hangtabs in the Super Wal-Mart where we spotted the Ragu product last month.

OBSERVATION & COMMENTARY

Both pouched sauces are being sold online by Amazon.com in six-count cartons that weigh significantly less than a comparable case of glass jars.

Unilever’s not releasing any of the supplier credits for the new package but industry sources report that the cost of transporting empty glass jars from Mexico to the filling lines – as well as the savings in energy to ship the products to retail outlets and online shoppers – were contributing factors in the decision to introduce stand-up pouches.

A clear bottom gusset on the pouches permits consumers to view contents. The pouches also eliminate cleanup of messy pots and partially-empty jars in the fridge.

Before placing it in the microwave, consumers cut a corner of the pouch to permit steam venting, pop it in the microwave for 90 seconds and pour the sauce directly on pasta, tossing the empty package in garbage. If Unilever is tracking consumer reviews of the Ragu pouch on Amazon.com, they may be working to add a zipper to the pouch, since the pouch’s lack of resealability and inability to be recycled were two negatives expressed by consumers who generally liked the idea of pouched sauces.

“Until now, quick and healthy were mutually exclusive mealtime goals,” says Robin Miller of Food Network TV. “With Ragu Fresh & Simple pouches, moms like myself, are provided an easier way to make smaller meals faster without sacrificing the great taste kids want with the nutrients they need.” These category pioneers are sure to be followed by other brands with new pouch sizes, shapes and convenience opening/resealing features.

--Ben Miyares

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Pesticide recall widens as EPA finds more mislabeled product

Charges of false, misleading claims, invalid registration numbers, lack of safety instructions force recall of at least four products by ScottsMiracle-Gro Co., Marysville, OH.

US Environmental Protection Agency (EPA) Region 5, Chicago, IL, adds Scotts Bonus S Max Southern Weed & Feed and Fire Ant Killer, Scotts Turf Builder Max Plus 2 Weed & Feed And Crabgrass Preventer to list of recalled products due to labeling problems including lack of safety instructions.

Labeling problems also prompt criminal investigation of company by US Department of Justice, Washington, DC. Initial recall involves products with invalid EPA registration numbers including 62355-4 marketed under names including Garden Weed Preventer Plus Plant Food, Miracle-Gro Shake ‘n Feed All Purpose Plant Food Plus Weed Preventer in 4.5-, 8-pound yellow applicator jugs with green circular cap. Second invalid number, 538-304, involves discontinued products used primarily by Scotts Lawn Service, marketed under Scotts Lawn Service Fertilizer name.

“Scotts’ actions indicate a pattern of disregard for the country’s pesticide laws," says Region 5 Administrator Mary A. Gade. “Proper registration, branding and labeling along with accurate product claims and mandatory safety instructions are crucial so that consumers can have confidence in the pesticide products they use at home.”

Company attributes labeling problems to “deliberate actions of a single employee,” now terminated, establishes toll-free consumer hotline, +1 888-295-0671, website page (www.scotts.com) to provide instructions for safe return of products. Company also retains independent consulting firm to determine how its internal checks/balances were circumvented, strengthen its regulatory compliance efforts. According to Scotts, recalled products represent less than 1% of its annual sales of $2.9 billion. Stock, which closed at $35.41 on Monday, 21 April 2008, dropped as low as $32.70 after recall announcement on 23 April, recovered somewhat to close at $34.19 on Friday, 25 April 2008.

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Metallized OPP combines barrier with source-reduced structure

Metallyte™ UBW-ES metallized oriented polypropylene film from ExxonMobil Chemical, Rochester, NY, combines barrier with lower weight, cost.

Two-layer white metallized film weighs less than three-layer foil laminations it replaces, reduces processing steps. Depending on structure of three-layer material it replaces, Metallyte UBW-ES results in weight reduction of up to 30%, improved puncture, flex-crack resistance. Material’s “inherent memory” helps prevent shop-worn look associated with some foil structures. Enhanced sealant technology provides excellent seal strength (1500 g/2.5cm), seal integrity, ability to seal through product contamination. Metallization offers exceptional barrier to gases, aromas, flavors, moisture with water vapor transmission rate of 0.3 grams/square metre (g/m2) at 38°C, 90% relative humidity (RH), 24 hours, oxygen transmission rate of 0.1 cubic centimetres/m2 at 23°C, 0% RH, 24 hours.

“Metallyte UBW-ES has been developed in response to market demand for new, innovative flexible packaging solutions,” says Michael Degus, global market segment manager, Films Business of ExxonMobil Chemical. “An increasing number of our customers are seeking solutions to replace aluminum foil, which is at historic high prices. By replacing aluminum foil and sealant, UBW-ES offers a means to reduce costs as well as the amount of post consumer waste.” Follow-up: Link: www.oppfilms.com.

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Dual anti-shoplifting tag receives patent

KMA Global Solutions International, Inc., Mississauga, ON, Canada, receives US Patent No. 7345583 for its DUALTag product. DUALTag combines two leading electronic article surveillance (EAS) technologies to simplify adding theft protection to packaging.

By eliminating need to apply both Checkpoint, Sensormatic EAS tags, DualTag streamlines packaging process, cuts tag inventory. Designed to be added during package converting process, early adopters include makers of over-the-counter pharmaceuticals, health/beauty aids, multimedia. Company plans to add radio frequency identification functionality to tag so it also can carry product information. Follow-up: Sales Department, +1 905-568-5220, sales@kmaglobalsolutions.com; Link: www.kmaglobalsolutions.com.

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Modeling software helps Intralox optimize conveyor systems

Demo3D modeling software from Emulate3D Ltd., Reading, UK, predicts behavior of packages on conveyors, helps quickly optimize design before construction.

During singulation, for example, “cases typically bump and behave unpredictably so you need a modeling system with a physics-based engine,” explains Tré Lapeyre, product manager, Material Handling Solutions at Intralox, Harahan, LA, which recently began using Demo3D software in-house to optimize designs by simulating conveyor connections, product flow, control performance. “We used to start with a computer-aided design (CAD) drawing, test it and refine it,” he reports. “Now we actually model the system first then do the CAD because changes can be made faster in the virtual world.” Modeling also allows Intralox to show customers how system performs in case of events like jams or surges. Software proves to be so valuable in design phase, Intralox extends its use to its services business where it models existing lines to troubleshoot problems, increase throughput or identify adaptations needed to accommodate new package. “Modeling helps determine whether a customer needs to change controls, increase speeds or add a new line to accommodate changes in business,” explains Lapeyre. Follow-up: At Intralox, Tré Lapeyre, +1 504-570-2747, tre.lapeyre@intralox.com; Link: www.intralox.com; at Emulate3D Americas, Salt Lake City, UT, Matt Hobson-Rohrer, business development, +1 801-831-5105, matt.hobson-rohrer@demo3D.com; Link: www.demo3d.com.

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USW workers at IP ratify new contract

Members of United Steelworkers Union (USW), Pittsburgh, PA, working at 32 converting facilities owned by International Paper (IP), Memphis, TN, ratify four-year master economic, security agreement.

Over life of contract, wages for approximately 2800 workers increase 8%, monthly service multiplier for pensions rises $4, advancing multiplier for entire converting sector of paper industry. “This converter master agreement covers wages, retirement benefits, health insurance benefits, job security issues and joint labor-management efforts in health and safety and public policy, and is similar in structure to the IP master [paper] mill agreement ratified last summer,” reports USW District 9 Director Stan Johnson. “It provides real security for our members….” Local unions retain own contract expiration dates, still oversee bargaining on local issues, but master agreement prohibits work stoppage by either party. Master agreement also includes successorship clause that keeps contract in place when facility is bought or sold, prohibits changes to PPO active medical healthcare plan without union agreement, restricts reduction in converter work force to volunteers or attrition except during temporary layoffs, or closures.

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Paperboard container promotes cat food

Del Monte Pet Products, San Francisco, CA, selects 7.5 x 4.5 x 12.8-inch Dorpak container from Sonoco, Hartsville, SC, to promote Meow Mix® cat food.

Stackable, reclosable, recycled paperboard-based container holds 3.15 pounds of Meow Mix Seafood Medley dry cat food plus four 2.75-ounce cups of Market Select wet cat food, 4.25-ounce pouch of Ocean Explosion Treats. Shelf presence of Dorpak container convinces Del Monte Pet Products to use it for holiday promotion in which product would be featured in end-cap display at outlets owned by Wal-Mart Stores, Bentonville, AR. Dorpak container combines stable, upright footprint with broad front panel, six-color offset printing. “The billboard effect really stood out among other brands, a plus for our holiday promotion,” recalls Jeriel Chua, associate brand manager for Meow Mix. “Wal-Mart wanted a special package design for end-cap displays. Sonoco’s technology allowed us to effectively partner with our retailer to meet its specific needs.” Riveted plastic handle makes 3.15-pound package easy to carry, while thermoformed polyvinyl chloride snap-on lid securely closes package between servings, protects freshness, keeps pests at bay, enhances stackability. Wide opening makes it easier to pour or scoop pet food. Upright container also stores neatly in pantries, closets. Durable container offers minimum stacking strength of 400 pounds. Made primarily of recycled paperboard, Dorpak containers consist of 85% recycled content. Follow-up: Myra Richey, +1 843-383-3333, myra.richey@sonoco.com; Link: www.sonoco.com/.

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Flavored beer launches in three bottle formats

Anheuser-Busch Cos., Inc., St. Louis, MO, presents Bud Light line extension in 16-ounce aluminum bottles, 12-, 22-ounce single-serve glass bottles.

Brewer fills Bud Light Lime beer at breweries in Baldwinsville, NY; Fort Collins, CO; Cartersville, GA. “With its distinct lime aroma and taste, Bud Light Lime makes it feel like summertime no matter what season it is,” says Rick Leininger, Bud Light director.

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Waste collector, recycler join forces in Florida

Recycling division of Smurfit-Stone Container Corp., partners with Waste Services, Inc., Burlington, ON, Canada, to operate Taft Materials Recycling Facility/Transfer Station near Orlando, FL.

With combined volumes of incoming material, Smurfit-Stone quadruples recovery ofrecyclables to 3,200 tons/month at Taft facility. Company relies on advanced sortingtechnology to recover more fiber, recyclables from waste stream. Series of screens, discs,magnets, air currents separate recyclable materials into their base components. Recyclingoperations help provide secure source of fiber for Smurfit-Stone’s paper mills.

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Mars and Wrigley form world’s largest candy company

Mars, Inc., McLean, VA, creates world’s largest confectionery company with $27 billion in sales, 64,000 employees worldwide with purchase of Wm. Wrigley Jr. Co., Chicago, IL, for $80/share in transaction worth approximately $23 billion.

After closing, which is contingent on shareholder approval, regulatory reviews and expected to occur toward end of 2008 or beginning of 2009, Wrigley becomes standalone subsidiary of Mars with its headquarters remaining in Chicago under leadership of Bill Wrigley Jr., executive chairman of Wrigley. At that time, Mars also plans to transfer its global non-chocolate confectionery brands including Starburst, Skittles to Wrigley portfolio.

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Vision systems protect quality of flexible packaging

Nordenia International AG, Greven, Germany, invests more than US$1.0 million in PrintVision/Argus inspection systems from Advanced Vision Technology Ltd. (AVT), Hod Hasharon, Israel.

Systems monitor quality of flexible packaging produced at Nordenia Polska, Poznan, Poland; Nordenia Deutschland, Halle, Gronau, Germany; Nordenia Iberica, Barcelona, Spain. Nordenia also plans to install system at Nordenia Slavnika, Pereslavl, Russia (near Moscow). PrintVision/Argus system combines area scanning camera for process fault detection with LCCD camera, which inspects 100% of web. When LCCD camera detects fault, scanning camera moves to location to facilitate identification, remedial action. Follow-up: At AVT, Gal Shamri, marketing vp, +1 214-734-7917, gals@avt-inc.com; Link: www.avt-inc.com.

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Graham starts next phase of SPC software rollout

With InfinityQS statistical process control (SPC) software running at 65 North American plants, Graham Packaging Co., LP, York, PA, begins rollout to its European operations.

Software from InfinityQS International, Chantilly, VA, monitors container production processes in real-time, provides sophisticated statistical analysis, alarming features, allows comparison of quality data from high-volume lines. With latest phase, InfinityQS provides on-site training, consulting services for six manufacturing sites in Europe, with additional sites to be added. Software replaces variety of SPC programs in use at different plants, allows Graham to standardize on single SPC system, supports enterprise-wide quality program. Follow-up: Elizabeth Goldman, +1 703-961-0200, egoldman@infinityqs.com; Link: www.infinityqs.com.

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Carrier bag maker in Middle East adopts biodegradable resin

Symphony Environmental Technologies Plc, Borehamwood, UK, begins supplying d2w oxo-biodegradable additives to Fujairah Plastic Group, Sharjah, United Arab Emirates (UAE).

First 500-ton order under 15-year agreement ships to Fujairah’s new operating company, Ecopolymers Co., before end of August 2008. In time, partners expect shipments to reach more than 500 tons/month to serve carrier bag needs of UAE, Bahrain, Kuwait, Oman, Egypt, Libya, Syria, Jordan. “Fujairah is one of the largest and fastest-growing carrier bag producers in the UAE and is concerned with the environmental effects of plastic pollution and litter,” says Khalid Al Kaabi, md of Fujairah Plastic Group. Follow-up: At Symphony, +44 20 8207 5900, info@degradable.net; Link: www.degradable.net.

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Metallized paper delivers mirror-like appearance

Uniform, crystal-clear surface of Mirricard metallized paper from Celloglas, Leicester, UK, produces mirror-like reflection. As exclusive North American distributor, Legion Paper, New York, NY, begins importing 16-point, or 370 grams/square metre (gsm), card stock in silver for packaging applications as well as nine colors of lighter 12-pt (270gsm) card stock. Legion also imports nine colors of 4-pt (100gsm) Mirriwrap paper. “The vivid colors are literally embedded into the film to prevent any scratching or flaking,” says Michael Ginsburg, president of Legion Paper. Applications include point-of-purchase displays, packaging for cosmetics, perfumes, spirits, DVDs, software. Follow-up: At Legion, Marc Schotland, director of Marketing, +1 212-683-6990, ext. 224, marc@legionpaper.com; Link: www.legionpaper.com; at Celloglas, Valraj Banning, business development advisor, +44 116 263 1010; Link: www.celloglas.co.uk.

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Many consumers embrace narrow definition of ‘recyclable’

More than half of US population, 54%, believes that packaging material must be capable of being recycled infinitely to be defined as “recyclable.”

But 41% consider package to be “recyclable” if it can be reused in other forms before being landfilled, according to poll released by Glass Packaging Institute, Washington, DC. Poll also shows that more than three out of four adults, 77%, believe that more than 50% of package should be able to be reprocessed to its original form to be considered “recyclable,” while 33% want to see 100% of package reprocessed to its original form. GPI presents poll results on 30 April 2008 at Green Guides and Packaging workshop held by Federal Trade Commission (FTC), Washington, DC. Poll of 1,000 respondents conducted by Opinion Research Corp., Princeton, NJ, carries margin of error of +/-3%. “We believe these poll results show that Americans want stringent guidelines for recycling…,” says Joe Cattaneo, GPI president. Follow-up: Link: www.gpi.org.

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BRC/IOP publishes new standard for packaging converters

Revised BRC/IOP Global Standard for Packaging and Packaging Materials (Issue 3) takes effect 1 July 2008, although certifications won’t begin until early 2009.

Broader standard, published by British Retail Consortium (BRC), London, UK, IOP: The Packaging Society (division of Institute of Materials, Minerals & Mining - IOM3), Grantham, UK, replaces Technical Standard for Food Packaging Manufacturers (Issue 2), sets hygiene, quality requirements for manufacturers of packaging, packaging materials for nonfood as well as food products. “Originally created to establish a standard for the supply of packaging and packaging materials for the food industry, this publication has now become a leading global standard adopted by major retailers and packaging businesses around the world,” says Ian Morris, technical & training manager for IOP. Expanded standard places greater emphasis on identification of hazards, risk assessment; commitment of senior management to quality management. “Certification to the standard provides a purchaser with the knowledge that accredited suppliers have the procedures in place to ensure the quality of their products will meet its requirements on an ongoing basis,” adds Morris. BRC begins working with accreditation bodies to train audit personnel in performance of certification audits. For suppliers of packaging, packaging materials, certification costs involve preparation for audit, fee for audit itself, which typically takes about 1.5 days. Standard calls for audits to be performed annually. Follow-up: At BRC, Link: www.brc.org.uk; at IOP, Glennis Harwood, +44 1476 514590, iop@iom3.org; Link: www.iop.co.uk.

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Produce shipper begins using RFID-equipped pallets

Dole Fresh Vegetables, Monterey, CA, begins shipping products on high-density polyethylene (HDPE) pallets from pool managed by Intelligent Global Pooling Systems (iGPS), Orlando, FL. Pallets injection molded by Schoeller Arca Systems, Southfield, MI, carry embedded radio frequency identification (RFID) tags so shippers, receivers can track/trace shipments in real time using technology from Xterprise, Dallas, TX. Precoded Class 1, Gen 2 Electronic Product Code tags carry 96 bits of information. Tag on each side of pallet provides redundancy, ensures 100% readability. All-HDPE 48 x 40-inch pallet, which also is used by Imperial Sugar, Sugar Land, TX; Pilgrims Pride Corp., Pittsburg, TX; Martori Farms, Scottsdale, AZ; meets requirements set by GMA, Washington, DC, weighs 30% less than typical multi-use wood pallet, is UL 2335 certified fire-retardant, 100% recyclable. When empty, retailers return pallets to iGPS depot or iGPS provides pickup. After washing, pallets return to circulation. “Using the iGPS plastic pallet is part of Dole’s commitment to continually providing our customers with value-added supply chain solutions,” says Robert Engle, vp of Supply Chain at Dole. “This pallet is a leap forward for the supply chain and, equally important, is further evidence of our commitment to acting in an environmentally responsible manner.” Follow-up: Marketing Department, +1 800-884-0225, info@igps.net; Link: www.igps.net; at Schoeller Arca, Amy Reinlein, marketing coordinator, +1 248-355-3000, amy.reinlein@schoellerarca.com; Link: www.schoellerarca.com.

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ShortRuns: Mocon… Bemis… M&H… PepsiCo… Stater Bros…

MOCON, Inc., Minneapolis, MN, schedules technical service/sales training conference 5-12 May 2008 in Shanghai, China, for 30 Asian distributors of its Pak Check®, Lippke, PERMATRAN-W®, OX-TRAN®, AQUATRAN® instruments, which help determine product shelf life by analyzing permeation (water vapor, oxygen, carbon dioxide), headspace, leak/seal strength of barrier film, packaging… Board of directors at flexible packaging converter Bemis Co., Inc., Neenah, WI, declares quarterly cash dividend of $0.22/share payable 2 June 2008 to shareholders of record at close of business on 16 May 2008… M&H Plastics, Beccles, UK, installs two injection stretch blowmolding machines at M&H Inc. plant in Winchester, VA, to meet rising demand from personal-care market for clear polyethylene terephthalate bottles; plant already extrusion blowmolds, decorates containers… PepsiCo, Purchase, NY, continues to expand portfolio of noncarbonated beverages with acquisition of V Water vitamin-enhanced spring water with no artificial flavors, colors, sweeteners, preservatives, which is sold in UK, will be manufactured, sold, distributed by Britvic plc, Chelmsford, UK, exclusive bottler in Great Britain for Pepsi, 7Up, Gatorade products…On Earth Day, 22 April 2008, major southern California grocery chain, Stater Bros., San Bernardino, CA, converts its largest paper grocery bag to 100% recycled content; chain also sells reusable bags for $0.99/each, provides recycling centers for shoppers…

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Upstream: Radtech…

RadTech UV&EB Technology Expo & Conference (www.RadTech2008.com), 4-7 May 2008 at McCormick Place in Chicago, IL, includes presentation on Monday, 5 May about recent approval of ultraviolet (UV), electron beam (EB)-curable coatings, inks for direct food contact by US Food and Drug Administration, Washington, DC; sustainable packaging session on Tuesday, 6 May…

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Changeover: T.H.E.M… Lowry… Multisorb… Hershey…

T.H.E.M., Marlton, NJ, promotes Brad Hardwick to vp Engineering; a specialist in systems/controls, Hardwick has worked on stick packaging projects at T.H.E.M. since 2003… Tim Cook joins Lowry Computer Products, Inc., Brighton, MI, as vp of Sales and Marketing to oversee expanding use of company’s radio frequency identification, wireless, bar code, data collection equipment, systems… Multisorb Technologies, Buffalo, NY, names Robert Sabdo business development leader – Food and Beverage Packaging responsible for expanding sorbent maker’s business in packaging of case-ready meat, processed meat, organic/natural foods, bakery, cheese, refrigerated prepared foods, beverages… John C. Long, vp, Corporate Social Responsibility at Hershey Co., Hershey, PA, retires after 22 years with company, shifts to consultant role, continues to lead Hershey’s efforts in cocoa sustainability, responsible cocoa growing…

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EarningsUpdate: IP… Temple-Inland… Bemis…

At International Paper (IP), Memphis, TN, sales slip to $5.7 billion in 1Q08 from $5.8 billion in 1Q07 as net earnings plummet to $133 million in 1Q08 from $434 million in 1Q07 due to increased costs, lower earnings from land sales in 1Q08, gain from sale of assets in 1Q07… Temple-Inland Inc., Austin, TX, weathers tough 1Q08 with $13 million loss on sales of $944 million compared to net income of $38 million on sales of $1.0 billion in 1Q07, due largely to cost of transformation plan, antitrust litigation… Modest growth in flexible packaging, which accounts for 83% of business at Bemis Co., Inc., Neenah, WI, helps push net sales up 4.2% to $947.3 million in 1Q08 compared to $909.1 million in 1Q07; while rising raw material costs put pressure on net income, which slips to $42.3 million in 1Q08 from $48.3 million in 1Q07…

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-- Ben Miyares, editor/publisher
-- Hallie Forcinio, managing editor
-- Pat Magee, contributing editor
Copyright 2006 Packaging Machinery Manufacturers Institute (PMMI), 4350 North Fairfax Drive, Suite 600, Arlington, Virginia (USA) 22203.

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