Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Food Packaging Technologies Summit

820 views

Published on

Presentation by Harris DeLoach, Sonoco Chairman and CEO, at the Food Packaging Technologies Summit in May 2012

Published in: Business
  • Be the first to comment

Food Packaging Technologies Summit

  1. 1. Food PackagingTechnologies SummitHarris E. DeLoach, Jr.May 8, 2012 1
  2. 2. Sonoco Today 2011 2010 2011 2010 2011 2010 2011 2010Sales $1,977.3 $1,798.5 Sales $1,892.2 $1,744.0 Sales $471.4 $477.2 Sales $158.0 $104.4Base EBIT $191.5 $196.0 Base EBIT $138.2 $136.4 Base EBIT $21.7 $14.2 Base EBIT $15.2 $17.5 2
  3. 3. Changing Business Mix 3
  4. 4. Global Consumer StrategySonoco’s strategy targets a shift in the mix of its businesstoward faster-growing consumer-related markets. 4
  5. 5. Only Total Solutions Provider Packaging Design, Innovation and SustainabilityArtwork Management Retail Merchandising and Recycling Complete Consumer Packaging Supply Packaging Chain Services 5
  6. 6. Corporate Customer GrowthKey New Brands Won Since 2005 2011 $1.1 billion sales Brand Size $1 billion+ $250 million+ 2005 $0.7 billion sales 6
  7. 7. Consumption Trends 7
  8. 8. Macro Economic Trends Impacting Packaging Macro-economic Impact on Packaging Industry  High unemployment – 8.1%  Low confidence in political leadership Consumers  Spending habits changing – High end and private label  High raw material inflation Customers  Cost reduction/substitutions  More CPG consolidation  Food inflation, inability to raise prices Retailers  Pushing for retail-ready solutions  Private label and store brand acceleration 8
  9. 9. What are Key Trends We See inPackaging Technology Packaging Format Changes Product Safety and Security Sustainability Bifurcation of Consumer Spending Consumer Convenience and Aging Populations Improving Shelf Presence E-Commerce and Non-Traditional Retailing Packaging Customization 9
  10. 10. Packaging Format ChangesA Case Study for Powdered Infant Formula Metal to Composite Cans Composites to Rigid Plastic Plastic to Flexible Pouch 10
  11. 11. Product Safety Regulatory Changes  BPA, mineral oils, solvents, melamine, etc. Global Food Safety Initiative Supply Chain Security 11
  12. 12. Health and Wellness Products87% of Consumer Trying to Eat Healthier 12
  13. 13. Product Stewardship and SustainabilityDesign for the EnvironmentA product offering’s interconnected design variables… GOAL …and Sonoco’s goal of consistently improving functionality, reducing cost and minimizing environmental impact! 13
  14. 14. Packaging SustainabilitySource Reduction 14
  15. 15. Packaging SustainabilityRenewable, Recycled content, Recyclability 15
  16. 16. Packaging Recycling  Grow U.S. collections 10% to 2 million tons in 2012  Greenville, S.C., MRF acquisition  Charleston, S.C., mini-MRF development  Onslow County, N.C., MRF 16
  17. 17. Company StewardshipSustainability, Citizenship Reducing Footprint 17
  18. 18. Bifurcation of Consumer SpendingPrivate Label Growth Sonoco PL packaging sales to $165 million in 2011 (8% of Consumer Packaging sales) PL Sales Composite Rigid Flexibles 2010 Cans Plastics $150 million $96 million $19 million $35 million % Division sales 13.5% 5.5% 7.15% 18
  19. 19. Consumer Diversity and Aging PopulationsAge-friendly Packaging 19
  20. 20. Shelf Presence 20
  21. 21. E-Commerce and Non-Traditional RetailingCold Chain Logistics 21
  22. 22. Packaging Customization 22
  23. 23. Key Takeaways Emerging market influences Consumer demands changing Packaging technology must change 23
  24. 24. Questions 24

×