Sonoco Prod Stock Price, News & Analysis

Sonoco (NYSE: SON) announced a $60 per ton price increase for all grades of uncoated recycled paperboard (URB) in the U.S. and Canada, effective November 1, 2021. This decision is driven by persistent inflationary pressures on manufacturing costs, including energy, freight, and materials. Tim Davis, General Manager, noted that these cost pressures are expected to continue into 2022 despite high demand for URB. Sonoco, with annualized net sales of approximately $5.2 billion, remains committed to quality and service amidst current supply challenges.

Sonoco (NYSE: SON) has achieved a Gold Medal rating from EcoVadis, placing it in the top 5% of paperboard and container manufacturers globally. This significant recognition stems from Sonoco's extensive efforts in sustainability across its 300 operations in 34 countries. Key improvements in Labor and Human Rights and Sustainable Procurement were highlighted, contributing to the company's commitment to corporate responsibility. With annual net sales of approximately $5.2 billion, Sonoco continues to prioritize sustainable practices to serve renowned global brands.

On September 24, 2021, Sonoco-Alcore announced a €50 (£50) per tonne price increase on all recycled paperboard grades sold in its EMEA regions, effective from October 4, 2021. This decision comes in response to rapidly escalating European energy costs, which are expected to remain high throughout the winter. Phil Woolley, Division Vice President – Paper Europe, stated that despite efforts to mitigate these costs, they must now be passed onto the market. Sonoco-Alcore operates 24 tube and core plants and five paperboard mills in Europe, and is wholly owned by Sonoco (NYSE:SON).

On September 7, 2021, Sonoco (NYSE: SON) announced a partnership with AMP Robotics, focusing on enhancing recycling rates for rigid paperboard cans. This collaboration leverages AMP's AI technology to sort Sonoco’s paper canisters efficiently, significantly reducing environmental impacts. The recycling of steel-bottomed paper containers offers a 45% lower environmental impact than virgin material production and over 40% less than landfilling. This partnership strengthens Sonoco's position in sustainable packaging solutions and supports its commitment to environmentally friendly practices.

Sonoco-Alcore S.a.r.l. has announced an 8% price increase on all tube and core grades in the EMEA region, effective from September 1, 2021. This decision stems from rising costs associated with raw materials, transportation, packaging, energy, and labor. The company, a subsidiary of Sonoco (NYSE:SON), stated that despite ongoing optimization efforts and cost-saving programs, it can no longer absorb these escalating expenses.

Sonoco-Alcore S.a.r.l., a subsidiary of Sonoco (NYSE:SON), announced a price increase of €50 per tonne on all recycled paperboard grades in the EMEA regions effective September 1, 2021. This decision is attributed to ongoing inflationary pressures affecting costs related to energy, waste paper, chemicals, packaging, and freight. Division Vice President Phil Woolley noted that despite efforts to mitigate these costs, they must now be passed on to the market. Further price increases may be considered before year-end as market conditions evolve.

Sonoco ThermoSafe, part of Sonoco (NYSE:SON), has forged a global partnership with Korean Air to lease the Pegasus ULD® temperature-controlled shipping container. This agreement allows pharmaceutical freight forwarders direct access to Pegasus ULDs through Korean Air, enhancing logistical efficiency. The Pegasus ULD® is the first FAA and EASA-approved passive bulk container for pharmaceuticals, designed for rapid international shipping. The partnership will incorporate the ICN airport into Sonoco ThermoSafe's network, providing support services through collaboration with Unilode.

Sonoco (NYSE: SON) announced a price increase of at least 8% for all paperboard tubes and cores in the U.S. and Canada, effective September 10, 2021. This decision is driven by significant market tightness and inflationary cost pressures on primary raw materials, including uncoated recycled paperboard and adhesives. Doug Schwartz, Division Vice President, emphasized the company's commitment to quality and service despite these challenges. Sonoco is the largest producer of paper-based tubes and cores in North America, serving various industries.

Cascades Sonoco has achieved SQF certification for its Birmingham facility, a significant milestone confirming adherence to the Safe Quality Food standards recognized globally for food safety. This certification enhances the company's ability to assure customers about the safety and reliability of their products across the food supply chain, including food manufacturing and animal feed production.

Jeff Stacy, Market Segment Manager, emphasized the importance of this certification in demonstrating their commitment to food safety and operational excellence.