Sonoco Announces Price Increase for Paperboard Tubes and Cores

Rhea-AI Summary

Sonoco (NYSE: SON) announced a price increase of at least 6% for all paperboard tubes and cores, effective from July 26, 2021, due to rising costs for uncoated recycled paperboard, which remains in tight supply. The company is also facing inflationary pressures in adhesives, packaging, and logistics. As the largest producer of paper-based tubes and cores in North America, Sonoco serves various industries, including paper and textiles. The company reported annual net sales of approximately $5.2 billion and strives to create sustainable packaging solutions.

Positive

• Sonoco, the largest North American producer of paper-based tubes and cores, shows strong market position.
• The price increase could help offset rising production costs, potentially stabilizing profit margins.

Negative

• Inflationary pressures in raw materials and logistics may continue to impact profitability.
• Higher prices may lead to reduced demand from customers sensitive to cost increases.

HARTSVILLE, S.C., June 23, 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 July 26, 2021.

“This price increase is necessary due to continued increases in costs for uncoated recycled paperboard (URB), our primary raw material which remains in very tight supply. Additionally, we continue to experience significant inflationary pressures in adhesives, packaging and logistics costs,” 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 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 year in a row. For more information, visit www.sonoco.com.

FAQ

What price increase did Sonoco announce for paperboard tubes and cores?

Sonoco announced a price increase of at least 6% for paperboard tubes and cores effective from July 26, 2021.

Why is Sonoco increasing the prices of its products?

The price increase is necessary due to rising costs for uncoated recycled paperboard and significant inflationary pressures in adhesives, packaging, and logistics.

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

The price increase will take effect on or after July 26, 2021.

How does the price increase affect Sonoco's market position?

As the largest producer of paper-based tubes and cores in North America, the price increase may help Sonoco maintain its profit margins despite rising costs.