We created a new market for our business model

In 2015, ePac was founded to serve the small run flexible packaging market. We met with Jack Knott, CEO of ePac to learn more about the franchise business model (think McDonalds and the likes) and the goal of the start-up. Jack Knott knows what he is talking about. Before founding ePac with some partners he has held several roles at companies in the industry.

A Unique Business Model

ePac Flexible Packaging was created with the exclusive goal to print flexible packaging jobs
digitally, making it affordable for their customers who prefer smaller batches. For this, ePac relied solely on their digital press of choice—the HP Indigo 20000 Digital Press.

Without any legacy analog presses or workflows to support, ePac was free to design workflows around the HP Indigo press from the get-go. Maximum productivity and efficiency were the top priority from day one. This meant that internal processes as well as external processes—such as how the customers did business with ePac—were designed with the digital workflow in mind.

While getting their digital workflows in place, the marketing team at ePac also spent a lot of time and effort in determining the right market for their digital printing solutions. They knew that there was an increase in demand for short and medium run length multiple SKU orders as brands looked at reaching out to customers in a more engaging manner.

They also knew that smalland mediumsized brands (SMBs) were struggling to find affordable, quality packaging. This has given rise to increased SKUs and packages with customized content. Moreover, with the rise of targeted product variations and test marketing, the demand for customized short and medium run length packaging was soaring.

However, with traditional flexography, printing customized short run packaging was not economical, and simply out of reach. ePac used this trend to their advantage. The team knew that the HP Indigo 20000 was most cost-effective for short runs and, in many cases, longer runs where different product variations and fast to time market were key.

With this information, they focused exclusively on offering quick, personalized, shortmedium run solutions to local customers manufacturing consumer packaged goods. Keeping things simple is integral to the ePac business model. Knott specified that digital has helped them reduce much of the equipment associated with flexo as “going digital helps us eliminate complexity from our workflow.”

He stated: “The press operator’s role is now much easier as he is focused on maintenance and the print job itself more than anything else.” Despite such a drastic change in the technology, Knott is pleased that they can do almost anything that others do on a traditional flexo press. Furthermore, he is quite confident that what they can’t replicate on digital as of yet, HP will help them achieve in the near future.

He added, “It’s just a matter of time.” For ePac, the future is 100% digital. In fact, Knott is clear that digital printing for packaging is not their offering to customers. ePac’s “real” product is their business model that uses digital printing as a tool to offer customers what they want: customized, short run flexible packaging that can be shipped in the shortest time possible.

The company states that they didn’t take away existing jobs from flexo but opened up a new market for small- and medium-sized businesses needing great packaging. They don’t consider themselves a competitor to the traditional flexible package printing industry, but they do see themselves as a game changer for the SMB market, and brands seeking to differentiate their products with the power of digital.

In the next five years— or even less—Knott expects that the digital printing business model will have developed so far that customers will be able to go to a web portal (like Amazon) and choose and buy a packaging design and order it online for delivery the next day.

Products and Applications

With the demand for customizable, flexible packaging on the rise, ePac offers solutions for a wide range of industries and products. Their current customer base includes local bakeries looking for costeffective and visually appealing packaging that keeps baked goods fresh longer, to frozen food manufacturers looking for packaging in different shapes and sizes, which will stay fresh on freezer shelves longer.

They also cater to other customers such as granola manufacturers, coffee producers and distributors, natural and organic foods, local cheese manufacturers, sports nutrition products and more. Typically, ePac’s digitally printed flexible solutions include multiformat pouches with 3- side sealing, pillow and lay-flat pouches, zipper pouches, and stand-up pouches with bottom gussets. With ePac’s solutions, short run, customized printing was affordable for the first time and within the reach of regular manufacturers.

Future plans

With the customized, digital print-on-demand business model, ePac seems to have found the perfect recipe for success for their niche. Their experience in the existing plants has shown them that with the digital workflow, they can reduce manufacturing time and provide customers with customized print at affordable rates.

This success is evident in the company’s rapid growth. Since start-up in 2016, ePac has grown at a steady pace, with more flexible packaging printing plants being added across the US. They have recently announced plans to launch new plants in Austin, LA and even Boston. During the interview, Knott mentioned that their goal is to have at least 15 plants opened by 2020. Each plant will be equipped to serve the customized, shortmedium run length packaging needs of customers who are looking to engage with their customers in a more interactive and engaging manner.

They have already placed an order for 20 more HP Indigo 20000 digital presses to support their US expansion. Valued at $100 million, this is the largest deal that the HP Graphics packaging business has made yet, which is just another indicator of how confident ePac is about the future for digital flexible packaging printing.