Sonoco Announces Price Increase for Paperboard Tubes and Cores

Rhea-AI Summary

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.

Positive

• Price increase of at least 8% could enhance revenue amid inflationary pressures.
• Sonoco maintains its commitment to quality and service, potentially strengthening customer relationships.

Negative

• Inflationary cost pressures indicate rising operational challenges.
• Market tightness may affect supply chain stability and pricing strategies.

News Market Reaction – SON

+1.15%

+1.15% Session move

In the trading session that priced this news, SON gained 1.15%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

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HARTSVILLE, S.C., Aug. 11, 2021 (GLOBE NEWSWIRE) -- Sonoco (NYSE: SON) today announced it will raise the price for all paperboard tubes and cores by a minimum of 8 percent, effective with shipments in the United States and Canada, on or after September 10, 2021.

“Significant market tightness and additional inflationary cost pressures to our primary raw materials (uncoated recycled paperboard and adhesives) make this increase necessary,” said Doug Schwartz, Division Vice President and General Manager, North America Tubes and Cores. “Despite these market and supply chain challenges, we remain committed to maintaining the quality and service that our customers have become accustomed to when working with Sonoco.”

Sonoco is the largest producer of paper-based tubes and cores in North America, which are used to serve the paper, plastic film, textile 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 19,000 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 consecutive year. For more information, visit www.sonoco.com.

FAQ

What percentage will Sonoco raise prices for paperboard tubes and cores?

Sonoco will raise prices by a minimum of 8%.

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

The price increase will be effective on or after September 10, 2021.

What factors led Sonoco to increase prices for its products?

The price increase is due to significant market tightness and inflationary cost pressures on raw materials.

Which regions are affected by Sonoco's price increase?

The price increase applies to shipments in the United States and Canada.

Who made the announcement regarding Sonoco's price increase?

The announcement was made by Doug Schwartz, Division Vice President and General Manager, North America Tubes and Cores.