Profile: Sonoco Products Co (SON)
22 Aug 2014
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 347 locations in 34 countries. The Company operates in four segments: Consumer Packaging, Paper and Industrial Converted Products, Display and Packaging, and Protective Solutions.
The Company’s Consumer Packaging operations consist of 79 plants throughout the world. The products, services and markets of the Consumer Packaging segment are 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, and global brand management. Its products and services are used for 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. The Consumer Packaging segment accounted for approximately 40% of the Company’s net sales during the year ended December 31, 2012.
Paper and Industrial Converted Products
The Company’s Paper and Industrial Converted Products segment serves its markets through 220 plants on five continents. Its paper operations provide the primary raw material for the Company’s fiber-based packaging. It 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 49 recycling facilities throughout the world. In 2012, Sonoco had the capacity to manufacture approximately 1.8 million tons of recycled paperboard. The products, services and markets of the Paper and Industrial Converted Products segment include recycled paperboard, chipboard, tubeboard, lightweight corestock, boxboard, linerboard, corrugating medium, specialty grades, paperboard tubes and cores, concrete forms, pallets, molded plugs, reels, collection, processing and recycling of old corrugated containers, paper, plastics, metal, glass, and other recyclable materials. Its products are used in converted paperboard products, spiral winders, beverage insulators, construction, film, flowable products, metal, paper mill, shipping and storage, tape and label, textiles, wire and cable, municipal, residential, and customer’s manufacturing and distribution facilities. The Paper and Industrial Converted Products segment accounted for approximately 38% of the Company’s net sales in 2012.
Display and Packaging
The products, services and markets of the Display and Packaging segment are point-of-purchase displays, custom packaging, fulfillment, primary package filling, supply chain management, paperboard specialties. The Company’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. The Display and Packaging segment accounted for approximately 10% of the Company’s net sales in 2012.
The products, services and markets of the Protective Solutions segment are engineered, custom-designed protective, temperature-assurance and retail security packaging solutions. The Company’s products and services 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. The Protective Solutions segment accounted for approximately 12% of the Company’s net sales in 2012.
Sonoco Products Co
ONE NORTH SECOND ST,
P O Box 160
HARTSVILLE SC 29551-0160