Amcor announces global price increases

Rhea-AI Summary

Amcor (NYSE: AMCR) has announced a price increase of up to 15% on its products globally, effective January 1, 2022. This decision responds to ongoing supply constraints and increased costs of raw materials, transport, and energy, which have been escalating since early 2021. Chief Commercial Officer Peter Konieczny emphasized collaboration with customers and supply chain partners to meet the rising demand for high-performance packaging while mitigating supply chain challenges.

Positive

• Price increases may help offset increased input costs and supply chain challenges.
• The strategic response aims to maintain service levels amidst elevated demand for packaging.

Negative

• Price increases could lead to reduced customer orders or pushback from clients.
• Supply chain constraints may persist, affecting long-term operational efficiency.

ZURICH, Dec. 15, 2021 /PRNewswire/ -- Amcor (NYSE: AMCR) (ASX: AMC) today confirmed price increases of up to 15% for products across its global businesses effective Jan. 1, 2022. The increases will vary depending on circumstances per customer, region and product type.

This measure is part of the company's ongoing response to supply constraints and higher input costs across multiple categories including raw materials, transport and energy since the beginning of calendar year 2021.

Peter Konieczny, Amcor's Chief Commercial Officer said: "Amcor is working closely with customers and supply chain partners to keep servicing elevated demand for high performance packaging. These price increases are necessary to ensure we continue to minimize the effects of challenges in global supply chains."

About Amcor

Amcor is a global leader in developing and producing responsible packaging for food, beverage, pharmaceutical, medical, home and personal-care, and other products. Amcor works with leading companies around the world to protect their products and the people who rely on them, differentiate brands, and improve supply chains through a range of flexible and rigid packaging, specialty cartons, closures and services. The Company is focused on making packaging that is increasingly light-weighted, recyclable and reusable, and made using an increasing amount of recycled content. Around 46,000 Amcor people generate $13 billion in annual sales from operations that span about 225 locations in 40-plus countries.

View original content:https://www.prnewswire.com/news-releases/amcor-announces-global-price-increases-301445404.html

SOURCE Amcor

FAQ

What is the reason for Amcor's price increase announcement on January 1, 2022?

Amcor cites ongoing supply constraints and rising costs for raw materials, transport, and energy as the reasons for implementing price increases.

How much will Amcor increase its product prices?

Amcor will implement price increases of up to 15% across its global product offerings.

When will Amcor's price increases take effect?

The price increases will be effective starting January 1, 2022.

What impact might the price increases have on Amcor's business?

While the price increases may help offset costs, they could also lead to reduced customer orders or resistance from clients.

Who commented on Amcor's price increase decision?

Peter Konieczny, Amcor's Chief Commercial Officer, provided insights on the necessity of the price increases.