Sonoco Announces Price Increases for Prepared and Specialty Foods Segment

Rhea-AI Summary

Sonoco (NYSE:SON) announced a price increase of 8% on CPET and PP thermoformed plastic trays and bowls, effective February 22, 2021. The company cites ongoing inflation and rising costs as the primary reasons for this adjustment. Rolfe Olsen, Segment Vice President, emphasized that despite efforts to offset these costs through manufacturing productivity and supply chain optimization, the current economic conditions necessitate passing costs to customers.

Positive

• Price increase may help offset rising input costs.
• Continued focus on manufacturing productivity and supply chain optimization.

Negative

• Price increase may impact customer demand.
• Ongoing inflation could pressure profit margins further.

HARTSVILLE, S.C., Jan. 25, 2021 (GLOBE NEWSWIRE) -- Sonoco (NYSE:SON), one of the largest diversified global packaging companies, announced today that its Prepared and Specialty Foods Segment will raise prices for CPET (crystallized polyethylene terephthalate) and PP (polypropylene) thermoformed plastic trays and bowls by 8 percent. The increases will be applied individually, and depending on product category, effective for shipments beginning on February 22, 2021. 

“These price adjustments are critical to manage continued increases in cost across our business. Thus far, we have offset much of these increased input costs via manufacturing productivity initiatives and supply chain optimization activities, but with continued inflation, we must now pass this cost on to our customers,” said Rolfe Olsen, Segment Vice President – Prepared & Specialty Foods at Sonoco.

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 23,000 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 Barron’s 100 Most Sustainable Companies. For more information, visit www.sonoco.com.

FAQ

What is the price increase percentage announced by Sonoco for thermoformed plastic trays?

Sonoco announced an 8% price increase for CPET and PP thermoformed plastic trays and bowls.

When will the price increases for Sonoco's trays and bowls take effect?

The price increases will take effect for shipments beginning on February 22, 2021.

Why is Sonoco raising prices on its products?

Sonoco is raising prices to manage ongoing inflation and increased input costs.

Who commented on the need for price adjustments at Sonoco?

Rolfe Olsen, Segment Vice President – Prepared & Specialty Foods, commented on the need for price adjustments.

What types of products are affected by Sonoco's price increase?

The price increase affects CPET and PP thermoformed plastic trays and bowls.