Berry Global to Expand its North American Capacity for Clear, Sustainable Foodservice Packaging

Rhea-AI Summary

Berry Global Group (NYSE: BERY) plans to invest over $110 million to expand its foodservice packaging operations in North America. This move will enhance its polypropylene thermoforming capabilities to produce clear cups and lids for quick-service restaurants, aligning with sustainability trends. The expansion is expected to generate 200 new jobs and support increased recycling efforts for polypropylene, a more environmentally friendly packaging option. The company anticipates a 60% increase in sales, driven by custom solutions for brand owners.

Positive

• Investment of over $110 million in North American operations.
• Expected 60% sales growth aligning with increasing demand.
• Creation of 200 new jobs in the local economy.
• Expansion supports sustainability and recycling initiatives.

Negative

• None.

Demand for High-Quality Polypropylene Continues as Foodservice Brands Seek More Sustainable Food Packaging Options

EVANSVILLE, Ind.--(BUSINESS WIRE)-- Berry Global Group, Inc. (NYSE: BERY) announced today plans to expand its foodservice packaging manufacturing operations in North America as part of its long-term strategic growth commitments. This more than $110 million investment will expand its proprietary and industry-leading polypropylene thermoforming capabilities to manufacture clear drink cups and lids for quick-service restaurants, coffee shops, convenience stores, and other foodservice markets. The clear design fills an increasing demand for a cup that showcases a premium brand image and beverage appeal and improves restaurant operation efficiencies while offering a more sustainable packaging option.

Foodservice brand owners are steadily increasing their forecasted volumes with Berry production for access to the Company’s 30-plus active patents across clear cups and lids. In addition, customized plastic cup and lid brand owner solutions are a rapidly increasing market trend, pulling volume from alternative substrates since 2017. As a result, Berry has demonstrated its market leadership, outpacing market trends growing its sales by a forecasted 60%*.

Sustainability Advantages
Polypropylene is viewed as one of the most sustainable and environmentally responsible transparent substrates available in the market today; it offers lower greenhouse gas emissions and reduced energy and water usage in comparison to PET. Berry’s increased capacity will produce clear cups and clear lids made of polypropylene (#5 PP), which can be recycled into new packaging or one of the many other end markets for PP. Polypropylene cups and containers are the third most curbside-recycled plastic by consumers, according to the 2019 U.S. Post-Consumer Plastic Recycling Data Dashboard.

Berry’s expanded capacity will also support future production of clear cups and lids that incorporate post-consumer resin and recyclable materials, in which Berry continues to invest.

“Foodservice brands are moving to meet their own sustainability goals, and polypropylene provides one of the lowest impact substrate options to help them get there,” said Bill Norman, president, Berry Global Consumer Packaging North America. “With Berry’s long record of innovation in foodservice packaging and this expanded capacity, we will deliver on the need to bring greater circularity to the disposable beverage cup market.”

This initiative is in line with Berry’s efforts to improve polypropylene curbside recycling. The company announced it has joined The Recycling Partnership’s Polypropylene Recycling to increase recycling access for polypropylene. The coalition awarded $4.2 million in grants to thirteen recycling facilities to positively impact nearly fifteen million Americans, nearly 6% of the U.S. population.

Expansion Benefits
The North American expansion – expected to be operational in 2022 – will add 200 new jobs at Berry facilities that will be announced soon.

*From a 2017 baseline

About Berry
At Berry Global Group, Inc. (NYSE:BERY), we create innovative packaging and engineered products that we believe make life better for people and the planet. We do this every day by leveraging our unmatched global capabilities, sustainability leadership, and deep innovation expertise to serve customers of all sizes around the world. Harnessing the strength in our diversity and industry leading talent of 47,000 global employees across more than 285 locations we partner with customers to develop, design, and manufacture innovative products with an eye toward the circular economy. The challenges we solve and the innovations we pioneer benefit our customers at every stage of their journey. For more information, visit our website, or connect with us on LinkedIn or Twitter.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210914005249/en/

Amy Waterman

+1 812 306 2435

amywaterman@berryglobal.com

Source: Berry Global Group, Inc.

FAQ

What is Berry Global's recent investment announcement?

Berry Global announced a $110 million investment to expand its foodservice packaging operations in North America.

How many jobs will Berry Global's expansion create?

The expansion is expected to create 200 new jobs.

What growth in sales is Berry Global forecasting?

Berry Global forecasts a 60% increase in sales driven by the expansion.

What sustainability initiatives is Berry Global involved in?

Berry Global's expansion supports increased recycling of polypropylene and sustainable packaging solutions.

When is Berry Global's North American expansion expected to be operational?

The expansion is expected to be operational in 2022.