Sonoco Announces Price Increase for Paperboard Tubes and Cores

Sonoco (NYSE: SON) announced a price increase of at least 6% for all paperboard tubes and cores, effective May 24, 2021, in the U.S. and Canada.

Rhea-AI Summary

Sonoco (NYSE: SON) announced a price increase of at least 6% for all paperboard tubes and cores, effective May 24, 2021, in the U.S. and Canada. This decision stems from ongoing rises in costs for uncoated recycled paperboard and significant inflation in adhesives, packaging, and logistics. As the largest producer of paper-based tubes and cores in North America, Sonoco continues to address supply challenges for its primary raw materials. The company remains committed to sustainable practices while serving various industries.

Positive

• Sonoco is the largest producer of paper-based tubes and cores in North America.
• The price increase reflects responsiveness to rising raw material costs.
• Continued focus on sustainable practices enhances corporate reputation.

Negative

• Rising costs for uncoated recycled paperboard may impact profit margins.
• Significant inflationary pressures in adhesives and logistics could further strain expenses.

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In the trading session that priced this news, SON gained 1.66%, reflecting a mild positive market reaction.

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HARTSVILLE, S.C., April 23, 2021 (GLOBE NEWSWIRE) -- Sonoco (NYSE: SON) today announced it will raise the price for all paperboard tubes and cores by a minimum of 6 percent, effective with shipments in the United States and Canada, on or after May 24, 2021.

“This price increase is necessary due to continued increases in costs for uncoated recycled paperboard (URB), our primary raw material which remains in very tight supply. Additionally, we are feeling significant inflationary pressures in adhesives, packaging and logistics costs,” said Mike Thompson, Director of Sales and Marketing for Sonoco’s North America Tubes and Cores Division.

Sonoco is the largest producer of paper-based tubes and cores in North America, which are used to serve the paper, textile, plastic film, and tape and specialty industries. For more information about Sonoco’s complete line of paperboard tubes and cores or to learn more about current pricing, please visit the Company’s website www.sonoco.com or contact the Company at 800-377-2692.

About Sonoco
Founded in 1899, Sonoco (NYSE: SON) is a global provider of consumer, industrial, healthcare and protective packaging. With annualized net sales of approximately $5.2 billion, the Company has 20,000 employees working in approximately 300 operations in 34 countries, serving some of the world’s best known brands in some 85 nations. Sonoco is committed to creating sustainable products, services and programs for our customers, employees and communities that support our corporate purpose of Better Packaging. Better Life. The Company was listed as one of Fortune’s World’s Most Admired Companies for 2021 as well as being included in Barron’s 100 Most Sustainable Companies for the third year in a row. For more information, visit www.sonoco.com.

FAQ

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What is the upcoming price increase for Sonoco's products?

Sonoco announced a price increase of at least 6% for all paperboard tubes and cores, effective May 24, 2021.

Why is Sonoco raising the price of paperboard tubes and cores?

The price increase is necessary due to rising costs for uncoated recycled paperboard and inflationary pressures in adhesives, packaging, and logistics.

When will Sonoco's price increase take effect?

The price increase will take effect on or after May 24, 2021.

What does Sonoco produce?

Sonoco is the largest producer of paper-based tubes and cores used across various industries including paper, textile, and specialty packaging.

How does the price increase affect Sonoco's shareholders?

The price increase may help offset rising costs, potentially stabilizing profit margins for shareholders.