Sonoco-Alcore to Increase Prices for Tubes & Cores in the United Kingdom and Ireland

Rhea-AI Summary

Sonoco-Alcore S.a.r.l. has announced a price increase of 7% for paper-based tubes and cores, effective January 18, 2021. This decision comes in response to ongoing cost increases due to general inflation and supply chain challenges. The company’s Director of Sales and Marketing emphasized the need to pass these costs to maintain a strong supply chain. Despite potential challenges from Brexit, Sonoco positions its local UK raw material supply as a strength for customer security.

Positive

• Price increase of 7% aims to manage rising operational costs.
• Company emphasizes commitment to maintaining a strong supply chain for customers.
• Local UK raw material sourcing strengthens supply security amid Brexit challenges.

Negative

• Continued inflation pressures may affect future pricing and customer relationships.

BRUSSELS, Belgium, Dec. 17, 2020 (GLOBE NEWSWIRE) -- Sonoco-Alcore S.a.r.l. today announced it will raise prices for paper-based tubes and cores by 7%. The increases will be applied individually and depending on product category, effective from shipments beginning on 18 January 2021.

“These adjustments are critical to manage continued increases in cost across the business. To date, we have absorbed these costs by further manufacturing footprint optimisation and supply chain activities but with continued general inflation, we must now pass this on to our customers. To secure materials, both locally and imported, we must act quickly so we can maintain the strong supply chain our customers need and value from Sonoco,” said Karsten Kemmerling, Director of Sales and Marketing – Tubes and Cores, Europe. “Brexit will bring its challenges and some additional inflation, but with our raw material supply located in the UK, this provides further supply security to our loyal UK customers.“

Sonoco Alcore S.a.r.l. is wholly-owned by Sonoco (NYSE:SON) and operates 29 tubes and cores plants and five paperboard mills in Europe, including a mill and three tube and core converting facilities in Italy.

FAQ

Why is Sonoco raising prices for paper-based tubes and cores?

Sonoco is raising prices by 7% due to ongoing cost increases from inflation and supply chain challenges.

When will the price increase for Sonoco products take effect?

The price increase will take effect on shipments beginning January 18, 2021.

What impact does Brexit have on Sonoco’s pricing strategy?

Brexit presents challenges and additional inflation, but local raw material supply in the UK provides security for customers.

What percentage is Sonoco increasing the prices of its products?

Sonoco is increasing prices for paper-based tubes and cores by 7%.

Who is the Director of Sales and Marketing for Sonoco-Alcore in Europe?

Karsten Kemmerling is the Director of Sales and Marketing – Tubes and Cores, Europe.