Sonoco-Alcore to Increase Paperboard Prices in the EMEA Region

On June 24, 2021, Sonoco-Alcore S.a.r.l. announced a price increase for all recycled paperboard grades in EMEA due to rising inflationary pressures.

Rhea-AI Summary

On June 24, 2021, Sonoco-Alcore S.a.r.l. announced a price increase for all recycled paperboard grades in EMEA due to rising inflationary pressures. Effective July 1, 2021, these increases are a response to escalating costs related to energy, packaging, and freight, which the company has been absorbing throughout 2021. Phil Woolley, Division VP – Paper Europe, indicated that previous cost increases were only passed on concerning waste paper prices.

Positive

• The price increase is a proactive response to rising costs, which may help maintain profit margins.
• Continued demand for recycled paperboard can stabilize revenue despite cost pressures.

Negative

• Increased dependency on passing costs to customers may lead to potential loss of market competitiveness.
• The ongoing inflationary environment could adversely affect overall sales volume.

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In the trading session that priced this news, SON gained 0.76%, reflecting a mild positive market reaction.

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BRUSSELS, Belgium , June 24, 2021 (GLOBE NEWSWIRE) -- Sonoco-Alcore S.a.r.l. today announced that due to inflationary pressures it will raise prices on all recycled paperboard grades sold in the Company’s EMEA regions.   The increases will be proportionate and in direct response to the rapidly escalating cost base and will be effective for all shipments made on or after the 1^st July 2021.

“We have continued to absorb costs throughout 2021 and so far, have only passed on costs associated with the escalating waste paper prices. With the recent increases in energy, starch, packaging and freight, we are now faced with no alternative but to pass these escalations onto the market,” said Phil Woolley, Division Vice President – Paper Europe.

Sonoco Alcore S.a.r.l. is wholly owned by Sonoco (NYSE:SON) and operates 24 tube and core plants and five paperboard mills in Europe.

FAQ

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What is the recent price adjustment announced by Sonoco (SON)?

Sonoco-Alcore S.a.r.l. announced a price increase for all recycled paperboard grades in EMEA regions, effective July 1, 2021.

Why is Sonoco raising prices on recycled paperboard?

The price increase is due to rising inflationary pressures, including escalating costs of energy, starch, packaging, and freight.

When will the price increase for Sonoco's recycled paperboard take effect?

The price increase will be effective for all shipments made on or after July 1, 2021.

Who is affected by the price increase of Sonoco's recycled paperboard?

Customers purchasing recycled paperboard grades from Sonoco-Alcore in EMEA will be affected by the price increase.

How has Sonoco managed cost increases prior to this announcement?

Sonoco had been absorbing costs throughout 2021 and only passed on costs associated with rising waste paper prices.