Sonoco to Raise Prices for CPET Plastic Trays and Bowls

Rhea-AI Summary

Sonoco (NYSE: SON) announced a 9% price increase on CPET thermoformed plastic trays and bowls, effective March 1, 2022. This adjustment responds to ongoing inflation affecting raw materials, transportation, labor, and manufacturing costs within its Prepared and Specialty Foods segment. The company aims to offset these increased costs, which have risen significantly over the past year, impacting overall profitability.

Positive

• Price increase of 9% on products helps counter inflationary pressures.
• Continued commitment to sustainable practices as noted in corporate purpose.

Negative

• Significant inflation in raw materials and manufacturing costs may affect profit margins.

HARTSVILLE, S.C., Jan. 26, 2022 (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) thermoformed plastic trays and bowls by 9 percent. The increases will be applied individually and will be effective for shipments on or after March 1, 2022.

The Company said the price adjustments are critical to manage continued increases in costs. Throughout the past year, Sonoco’s Prepared & Specialty Foods segment has faced unprecedented inflation in key raw materials as well as transportation, packaging, labor, and other direct and indirect manufacturing costs. As a result of ongoing inflationary pressure, the Company is adjusting prices to account for non-index-based increases passed on by materials suppliers and general inflation on all other cost inputs.

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 $5.5 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

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

The price increase will take effect for shipments on or after March 1, 2022.

What percentage did Sonoco raise prices for CPET thermoformed products?

Sonoco raised prices by 9% for CPET thermoformed plastic trays and bowls.

What reasons did Sonoco give for the price increase?

The price increase is a response to unprecedented inflation in raw materials, labor, and manufacturing costs.

What is the impact of inflation on Sonoco's Prepared and Specialty Foods segment?

Inflation in key raw materials and costs has prompted Sonoco to adjust prices to maintain profitability.