Sonoco Announces Price Increase for Paperboard Tubes and Cores

Rhea-AI Summary

Sonoco has announced a 6% price increase for all paperboard tubes and cores, effective March 1, 2021, in the U.S. and Canada. This decision is driven by rising costs of uncoated recycled paperboard, its main raw material, attributed to high demand and limited supply. As the largest producer of paper-based tubes and cores in North America, Sonoco aims to maintain pricing competitiveness while addressing increasing operational costs. The company's ongoing commitment to sustainability underpins its operations, with annualized net sales of approximately $5.4 billion.

Positive

• Announcement of a 6% price increase, potentially boosting revenue.
• Firm demand for uncoated recycled paperboard, indicating stability in core markets.

Negative

• Rising costs of raw materials may affect profit margins if prices cannot be passed on fully to customers.

HARTSVILLE, S.C., Feb. 03, 2021 (GLOBE NEWSWIRE) -- Sonoco today announced it will raise the price for all paperboard tubes and cores by a minimum of 6 percent, effective with shipments in the United States and Canada, on or after March 1, 2021.

“This price increase is necessary due to continued increases in costs for uncoated recycled paperboard (URB), our primary raw material. URB demand remains very strong, and the supply in the marketplace is extremely tight,” said Mike Thompson, Director of Sales and Marketing for Sonoco’s North America Tubes and Cores Division.

Sonoco is the largest producer of paper-based tubes and cores in North America, which are used to serve the paper, textile, plastic film, 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 a variety of consumer packaging, industrial products, protective packaging, and displays and packaging supply chain services. With annualized net sales of approximately $5.4 billion, the Company has 20,000 employees working in approximately 300 operations in 36 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 ranked first in the Packaging sector on Fortune’s World’s Most Admired Companies for 2020 as well as being included in Barron’s 100 Most Sustainable Companies. For more information, visit www.sonoco.com.

FAQ

Why is Sonoco raising prices for paperboard tubes and cores?

Sonoco is raising prices due to increased costs for uncoated recycled paperboard, its primary raw material, alongside strong demand and tight supply.

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

The price increase will take effect on March 1, 2021, for shipments in the United States and Canada.

What is the percentage of the price increase announced by Sonoco?

Sonoco has announced a price increase of a minimum of 6% for its paperboard tubes and cores.

What are Sonoco's annual net sales figures?

Sonoco has annualized net sales of approximately $5.4 billion.

What industry does Sonoco primarily serve with its products?

Sonoco primarily serves the paper, textile, plastic film, and tape and specialty industries with its paperboard tubes and cores.