Sonoco Implementing Price Increase for all Paperboard Converted Products in North America and Canada

Rhea-AI Summary

On June 17, 2024, Sonoco (NYSE: SON) announced a price increase of at least 6% for all paperboard converted products, effective July 10, 2024, in the United States and Canada. The affected products include tubes, cores, cones, and protective packaging. This decision is driven by rising costs for uncoated recycled paperboard (URB), Sonoco's primary raw material, as well as other inflationary pressures. The announcement was made by Mike Thompson, Vice President of Sales and Marketing for Sonoco’s North American Converted Paper Products Division.

Positive

• Price increase of at least 6% for paperboard products effective July 10, 2024.
• Action aims to mitigate rising costs for uncoated recycled paperboard (URB) and other inflationary factors.

Negative

• Increased product prices could reduce demand and negatively affect sales volume.
• Rising costs for raw materials and inflationary pressures indicate broader financial challenges.

HARTSVILLE, S.C., June 17, 2024 (GLOBE NEWSWIRE) -- Sonoco (NYSE: SON) today announced it will raise the price for all converted paperboard products by a minimum of 6 percent, effective with shipments in the United States and Canada, on or after July 10th, 2024. This includes tubes, cores, cones and protective packaging.

“This price increase is necessary due to continued increases in costs for uncoated recycled paperboard (URB), our primary raw material, plus other inflationary costs,” said Mike Thompson, Vice President of Sales and Marketing for Sonoco’s North American Converted Paper Products Division.

Contact Information:
Lisa Weeks
Vice President of Investor Relations & Communications
lisa.weeks@sonoco.com
843-383-7524

About Sonoco
With net sales of approximately $6.8 billion in 2023, Sonoco has approximately 22,000 employees working in more than 300 operations around the world, serving some of the world’s best-known brands. With our corporate purpose of Better Packaging. Better Life., Sonoco is committed to creating sustainable products and a better world for our customers, employees, and communities. Sonoco was named one of America’s Most Responsible Companies by Newsweek. For more information on the Company, visit our website at www.sonoco.com.

FAQ

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

The price increase will take effect on July 10, 2024.

What percentage is Sonoco increasing its paperboard product prices?

Sonoco is increasing its paperboard product prices by at least 6%.

Why is Sonoco raising its paperboard product prices?

Sonoco is raising its prices due to rising costs for uncoated recycled paperboard (URB) and other inflationary pressures.

What products are affected by Sonoco's price increase?

The price increase affects all converted paperboard products, including tubes, cores, cones, and protective packaging.

Is the price increase to the United States?

No, the price increase applies to shipments in both the United States and Canada.