Sonoco Prod Stock Price, News & Analysis

Sonoco-Alcore S.a.r.l. has announced a price increase of 7% for paper-based tubes and cores, effective January 18, 2021. This decision comes in response to ongoing cost increases due to general inflation and supply chain challenges. The company’s Director of Sales and Marketing emphasized the need to pass these costs to maintain a strong supply chain. Despite potential challenges from Brexit, Sonoco positions its local UK raw material supply as a strength for customer security.

Sonoco-Alcore S.a.r.l. will increase prices by €60 (£50) per tonne on all recycled paperboard grades in EMEA regions, effective January 1, 2021. This price hike is a response to the surging costs and limited availability of waste paper across Europe, which has compelled the company to pass these costs onto the market after absorbing them throughout 2020. Phil Woolley, Division Vice President – Paper Europe, indicated that the company had no alternative but to implement this increase.

Sonoco, a leader in sustainable packaging, announced its partnership with the Digital Watermarks Initiative Holy Grail 2.0, aimed at enhancing recycling efficiency in the EU. With over 85 partners, the initiative focuses on using digital watermark technology to improve sorting of packaging waste. This advancement aligns with Sonoco's ongoing commitment to sustainable practices, highlighted by its EnviroSense® line. The watermarks will aid in identifying packaging materials for better recycling, while also providing consumers and brands enhanced information about the products.

Sonoco (NYSE: SON) announced a 5% price increase for all rigid paper containers and closures in North America, effective January 15, 2021. The decision, according to Vice President Ernest Haynes, is prompted by rising raw material costs and operational challenges due to the COVID-19 pandemic. Increased prices aim to recover costs associated with steel and recovered paper, as well as labor and inventory carrying expenses. Sonoco emphasizes its commitment to maintaining supply continuity for customers during these turbulent times.

Sonoco (NYSE: SON) announced the successful divestiture of its Europe contract packaging business for $120 million in cash to a subsidiary of Prairie Industries Holdings. This business, which generated $300 million in net sales in 2019, included six facilities in Poland and employed approximately 2,600 individuals. The divestiture aims to streamline operations and allow Sonoco to focus on its core Consumer and Industrial packaging sectors. Proceeds will be used to pay off remaining short-term debt, enhancing the company's liquidity position.

Sonoco Protective Solutions has launched two new sustainable packaging options, the EnviroSense FiberMax™ Bulk Box and Master Roll, targeting heavy and high-value products. These 100% recyclable solutions offer enhanced protection, reduce storage space, and lower costs—up to 50% cheaper than wooden crates. The FiberMax Bulk Box is designed for products weighing thousands of pounds, while the Master Roll is suitable for roll-form materials. This innovation aligns with Sonoco's commitment to sustainability and reflects their ongoing efforts to develop eco-friendly solutions.

Sonoco ThermoSafe has launched the EOS™ line of fully curbside recyclable temperature controlled packaging in the U.S. This innovative packaging system addresses the need for reliable curbside recyclability in life sciences and perishable products. Unlike competitors, EOS uses recyclable materials that meet municipal recycling guidelines. Made from 100% post-industrial paper fiber, EOS supports a circular economy by potentially transforming scrap materials into new products. The line aims to provide trusted recyclable solutions for global clients in pharmaceuticals and food sectors.

Sonoco has launched a new, patent-pending roll-feed, cut and seal machine for medical packaging applications utilizing Tyvek. This machine enhances production efficiency by reducing operator error, lowering tooling costs, and increasing sealing speeds and quality. It is compatible with various Tyvek materials and incorporates an automatic feeder to improve production rates. The machine's design allows for recycling of Tyvek scrap, aligning with Sonoco's sustainability goals. This innovation reflects Sonoco's commitment to improving packaging solutions in the medical industry.