Profile: Sonoco Products Company (SON)
26 May 2015
Sonoco Products Company (Sonoco), incorporated on May 10, 1899, is a manufacturer of industrial and consumer packaging products and a provider of packaging services, with 335 locations in 33 countries. The Company operates in four segments: Consumer Packaging, Paper and Industrial Converted Products, Display and Packaging, and Protective Solutions. The consumer packaging segment is involved in manufacture of round and shaped rigid containers and trays; blow-molded plastic bottles and jars; extruded and injection-molded plastic products; printed flexible packaging; metal and peelable membrane ends and closures, and global brand artwork management. The Display and Packaging segment is engaged in supply management. The paper and industrial converted products segment provides the primary raw material for the Company’s fiber-based packaging. The protective solutions segment’s products include custom-engineered paperboard-based and expanded foam protective packaging; temperature-assurance packaging; and retail security packaging.
The segment’s operations consist of 77 plants across the world. The segment provides products and services include round composite cans, shaped rigid paperboard containers, fiber caulk/adhesive tubes, aluminum, steel and peelable membrane easy-open closures for composite and metal cans; plastic bottles, jars, jugs, cups and trays; printed flexible packaging, rotogravure cylinder engraving, global brand management.
As of December 31, 2013 (fiscal 2013), the segment accounted for approximately 39% net sales. The products of the segment are used in snacks, nuts, cookies, crackers, hard-baked goods, desserts, candy, gum, frozen concentrate, powdered and liquid beverages, non-carbonated beverages, ready-to-drink products, powdered infant formula, coffee, refrigerated dough, frozen entrees, processed food, vegetables, fruit, seafood, poultry, soup, pasta, dairy, sauces, dips, fresh-cut produce, pet food, home and personal care and adhesives.
Display and Packaging
The Display and Packaging segment’s products and services include designing, manufacturing, assembling, packing and distributing temporary, semi-permanent and permanent point-of-purchase displays; supply chain management services, including contract packing, fulfillment and scalable service centers; and paper amenities, such as coasters and glass covers. For the fiscal 2013, the segment accounted for approximately 11% net sales. The segment’s products are used in automotive, beverages, candy, electronics, personal care, baby care, food, cosmetics, fragrances, hosiery, office supplies, toys, home and garden, medical, over-the-counter drugs, sporting goods, hospitality industry and advertising.
Paper and Industrial Converted Products
The Paper and Industrial converted products segment’s products includes high-performance paper and composite paperboard tubes and cores; fiber-based construction tubes and forms; wooden, metal and composite wire and cable reels and spools, and recycled paperboard, linerboard, corrugating medium, recovered paper and other recycled materials. For the fiscal 2013, the segment accounted for approximately 38% net sales.This segment serves its markets through 192 plants on five continents. Sonoco uses approximately 56% of the paper it manufactures, and the remainder is sold to third parties. This vertical integration strategy is supported by 20 paper mills with 30 paper machines and 25 recycling facilities throughout the world. In 2013, Sonoco had the capacity to manufacture approximately 1.8 million tons of recycled paperboard.
The Company’s paper operations provide the primary raw material for the Company’s fiber-based packaging. The segment’s products include recycled paperboard, chipboard, tubeboard, lightweight corestock, boxboard, linerboard, corrugating medium, specialty grades; paperboard tubes and cores, molded plugs, reels; collection, processing and recycling of old corrugated containers, paper, plastics, metal, glass and other recyclable materials. The segment products are used in converted paperboard products, spiral winders, beverage insulators, construction, film, flowable products, metal, paper mills, shipping and storage, tape and label, textiles, wire and cable, municipal, residential, customers’ manufacturing and distribution facilities.
The Protective Solutions segment provides products include custom-engineered paperboard-based and expanded foam protective packaging; temperature-assurance packaging; and retail security packaging. For the fiscal 2013, the segment accounted for approximately 12% net sales. The segment’s products include engineered, custom-designed protective, temperature-assurance and retail security packaging solutions. The segment’s products are used in consumer electronics, automotive, appliances, medical devices, temperature-sensitive pharmaceuticals and food, heating and air conditioning, office furnishings, fitness equipment, promotional and palletized distribution.
Sonoco Products Company
1 North Second St
PO Box 160
HARTSVILLE SC 29551-0160