HP Inc. Acquires Choose Packaging

Rhea-AI Summary

HP Inc. announced the acquisition of Choose Packaging, a company known for its patented zero-plastic paper bottle technology. The move aims to enhance HP’s capabilities in the sustainable packaging market, potentially worth $10 billion. Choose's innovative bottles, composed of non-toxic materials, present a viable alternative to traditional plastic packaging.

Through this acquisition, HP intends to align its sustainability goals and disrupt the market for single-use plastics, leveraging its expertise in 3D printing and scaling Choose’s operations globally.

Positive

• Acquisition strengthens HP's position in the $10 billion sustainable packaging market.
• Choose's patented zero-plastic paper bottle technology aligns with HP's sustainability goals.
• Integration into HP's 3D printing business allows faster market entry for fiber-based products.

Negative

• None.

Transaction supports HP’s strategy to disrupt strategic vertical markets and drive environmental sustainability

PALO ALTO, Calif., Feb. 02, 2022 (GLOBE NEWSWIRE) -- HP Inc. today announced the acquisition of Choose Packaging, a packaging development company and inventor of the only commercially available zero-plastic paper bottle in the world.

Choose’s patented technology provides an alternative to plastic bottles and can hold a wide variety of liquid products. Its novel, paper-based bottles are made with naturally occurring and non-toxic materials and pave the way for a new standard for bottling solutions globally.

“This acquisition is a great example of how we continue to strengthen our capabilities in attractive verticals like sustainable packaging while also driving progress against HP’s broader sustainability goals,” said Savi Baveja, Chief Strategy & Incubation Officer, HP Inc. “Choose has built a truly differentiated technology and we are excited to welcome this talented team to the HP family.”

HP is well positioned to disrupt the $10 billion fiber-based sustainable packaging market. HP’s first step in transforming this industry was the introduction of its 3D printing-enabled Molded Fiber Tooling Solution designed to bring customizable, fiber-based products to market faster and more affordably.

With the integration of Choose into its Personalization & 3D Printing business, HP will focus on scaling its technology and customer footprint to expand the addressable market. There are more than 150 million tons of single-use plastics produced each year and HP intends to disrupt this market with fiber-based, 100% plastic-free packaging.

“As a plastic-free packaging development company, we’ve successfully created technology that can provide a viable alternative to plastic bottles to help eliminate single-use PET packaging,” said James Longcroft, founder and managing director, Choose Packaging. “HP’s world-class capabilities and expertise can help scale our impact at a global level. We are thrilled to join the HP team and couldn’t have chosen a better match in terms of our shared goals for business, technology, sustainability, and a values-oriented culture.”

Choose works with many large global companies including Accolade Wines, one of the biggest wine companies in the world with over 50 brands including Hardys, Banrock Station, and Grant Burge available in more than 130 countries; Henkel, one of the world’s largest consumer and industrial goods companies; Malibu Rum, one of the strategic international brands in Pernod Ricard’s global portfolio; and many more.

“At Accolade Wines, we put innovation and sustainability at the heart of everything we do in our mission to be the world’s most innovative wine company. We are excited to see Choose join a recognized leader like HP who puts these topics at the top of its agenda. Consumers are demanding more sustainable alternatives and we look forward to continuing our work together to be the first wine company globally to deliver 100% biodegradable packaging across some of our leading brands including Banrock Station and Hardys,” said Sandy Mayo, Chief Marketing Officer, Accolade Wines.

“Henkel drives active progress towards a circular economy by creating smarter packaging for the benefit of people and the planet,” said Berthold Schreck, R&D Vice President Laundry Care, Henkel. “Choose and HP bring together a game-changing combination of packaging technologies and we are excited to collaborate to develop new sustainable packaging solutions and reduce plastics in our consumer goods products.”

Financial terms of the transaction were not disclosed.

About HP
HP Inc. is a technology company that believes one thoughtful idea has the power to change the world. Its product and service portfolio of personal systems, printers, and 3D printing solutions helps bring these ideas to life. Visit http://www.hp.com.

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FAQ

What is the significance of HPQ's acquisition of Choose Packaging?

The acquisition supports HP’s strategy to disrupt the sustainable packaging market and enhance its environmental initiatives.

What technology does Choose Packaging bring to HPQ?

Choose Packaging offers patented zero-plastic paper bottle technology that provides an alternative to traditional plastic packaging.

How will the acquisition impact HPQ's market strategy?

HPQ aims to leverage Choose Packaging's technology to scale operations and capture a larger share of the sustainable packaging market.

What are the expected benefits of the integration for HPQ and Choose?

The integration is expected to enhance production capabilities and accelerate the adoption of fiber-based packaging solutions.

What is the estimated market value that HPQ is targeting?

HPQ is looking to disrupt the $10 billion fiber-based sustainable packaging market.