Sonoco Implementing Price Increase for Uncoated Recycled Paperboard

Rhea-AI Summary

Sonoco (NYSE: SON) announced a $50 per ton price increase for all grades of uncoated recycled paperboard (URB) in the U.S. and Canada, effective July 15, 2021. This decision is driven by strong demand, which has led to order backlogs reaching historical levels, and inflationary pressures from energy, freight, and materials. With annual net sales of approximately $5.2 billion, Sonoco continues to focus on sustainable packaging solutions and has received recognition as one of Fortune’s Most Admired Companies and Barron's 100 Most Sustainable Companies.

Positive

• Effective price increase of $50 per ton indicates strong demand for URB.
• Order backlogs have reached near historical levels, suggesting robust market conditions.
• Sonoco is recognized for sustainability, enhancing brand image and customer loyalty.

Negative

• Inflationary pressures from energy, freight, and materials could impact margins.

HARTSVILLE, S.C., June 21, 2021 (GLOBE NEWSWIRE) -- Sonoco (NYSE: SON) today announced it is implementing a $50 per ton price increase for all grades of uncoated recycled paperboard (URB) in the United States and Canada, effective with shipments beginning July 15, 2021.

Sonoco said the price increase was in response to continuing strong demand across its U.S. and Canada mill network which has driven order backlogs to near historical levels as well as stepped up inflationary pressures from energy, freight, papermaking chemicals and packaging materials.

About Sonoco

Founded in 1899, Sonoco 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 more than 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 2021 as well as being included in Barron's 100 Most Sustainable Companies for the third year in a row.

FAQ

What is the reason for Sonoco's price increase on uncoated recycled paperboard?

The price increase is due to strong demand and inflationary pressures affecting energy, freight, and materials.

When will Sonoco's price increase on URB take effect?

The price increase will take effect on July 15, 2021.

How much is Sonoco increasing the price of uncoated recycled paperboard?

Sonoco is implementing a price increase of $50 per ton.

What are Sonoco's annual net sales?

Sonoco's annual net sales are approximately $5.2 billion.

What recognition has Sonoco received for sustainability?

Sonoco has been included in Barron's 100 Most Sustainable Companies for three consecutive years.