Sonoco Announces Price Increase for Paperboard Tubes and Cores

Rhea-AI Summary

Sonoco (NYSE: SON) announced a minimum 6% price increase for all paperboard tubes and cores, effective November 8, 2021, in the United States and Canada. This decision is driven by ongoing inflation in Uncoated Recycled Board, adhesives, and primary packaging components, alongside high market demand. Doug Schwartz, Division Vice President, emphasized the company's dedication to maintaining quality and service amid current supply chain challenges. Sonoco is North America's largest producer of paper-based tubes and cores, catering to diverse industries.

Positive

• Announced a 6% price increase, potentially boosting revenue amidst high market demand.
• Retains commitment to quality and service, which may strengthen customer loyalty.

Negative

• Price increase indicates ongoing inflationary pressures which could impact profit margins.

HARTSVILLE, S.C., Oct. 11, 2021 (GLOBE NEWSWIRE) -- Sonoco (NYSE: SON) 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 November 8, 2021.

“Continuing inflationary increases, particularly in Uncoated Recycled Board, adhesives and primary packaging components, coupled with exceptional market demand make this increase necessary,” said Doug Schwartz, Division Vice President and General Manager, North America Tubes and Cores. “Despite these unique times with market and supply chain challenges, we remain committed to maintaining the quality and service that our customers have become accustomed to when working with Sonoco.”

Sonoco is the largest producer of paper-based tubes and cores in North America, which are used to serve the paper, plastic film, textile 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 consumer, industrial, healthcare and protective packaging. With annualized net sales of approximately $5.2 billion, the Company has 19,000 employees working in approximately 300 operations in 34 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 was listed as one of Fortune’s World’s Most Admired Companies for 2021 as well as being included in Barron’s 100 Most Sustainable Companies for the third consecutive year. For more information, visit www.sonoco.com.

FAQ

What is the reason for Sonoco's price increase effective November 8, 2021?

Sonoco's price increase is due to inflationary costs in Uncoated Recycled Board, adhesives, and rising market demand.

When will the price increase for Sonoco's paperboard tubes and cores take effect?

The price increase will take effect on or after November 8, 2021.

What percentage will Sonoco increase the price of its paperboard tubes and cores?

Sonoco will raise prices by a minimum of 6%.

Who is the Division Vice President commenting on the price increase at Sonoco?

Doug Schwartz is the Division Vice President and General Manager, North America Tubes and Cores.

What industries does Sonoco serve with its paper-based tubes and cores?

Sonoco serves the paper, plastic film, textile, tape, and specialty industries.