Profile: Sonoco Products Co (SON)
3 Dec 2013
Sonoco Products Company (Sonoco) is a manufacturer of industrial and consumer packaging products and a provider of packaging services. The Company operates in four segments: Consumer Packaging, Paper and Industrial Converted Products, Packaging Services and Protective Packaging. On November 8, 2011, the Company acquired Tegrant Holding Corporation.
Sonoco’s Consumer Packaging segment consists of 79 plants worldwide. The products, services and markets of the Consumer Packaging segment includes rigid packaging-paper, rigid packaging-blow molded plastic, rigid packaging- thermoformed plastic, ends and closures, molded and extruded plastics, and printed flexible packaging. Rigid Packaging-Paper includes round and shaped composite paperboard cans, single-wrap paperboard packages, fiber cartridges, which are used in the food markets for powdered beverages and infant formulas, coffee, cereal, snacks, nuts, cookies and crackers, confectionery, refrigerated dough, frozen concentrates, spices/seasonings, nutritional supplements, pet foods, and nonfood markets for adhesives, caulks, cleansers, household chemicals, lawn and garden, automotive, pet products.
Rigid Packaging-Blow Molded Plastics includes monolayer and multilayer bottles and jars, which are used in the food markets for noncarbonated, high-barrier beverages/ready-to-drink products, coffee, powdered beverages, condiments, nonfood markets for health and beauty, household chemicals, automotive, adhesives and specialty products. Rigid Packaging-Thermoformed Plastic includes monolayer, coated and barrier and non-barrier laminated tubs, cups, spools, consumer and institutional trays, which are used in the food markets for processed, frozen, chilled and ready-to-eat foods, sauces and dips, pet foods, snacks and nuts, fresh-cut produce, desserts and food services.
Molded and Extruded Plastics includes product design, tool design and fabrication, and manufacturing in both injection molding and extrusion technologies, which are used in the food markets for food service, medical, healthcare, textiles, wire and cable, fiber optics, filtration, plumbing and automotive. Ends and Closures includes aluminum, steel and peelable membrane easy-open closures for composite, metal and plastic containers, which are used in the food markets for powdered beverages and infant formulas, coffee, cereal, snacks, nuts, cookies and crackers, confectionery, refrigerated dough, frozen concentrates, spices/ seasonings, nutritional supplements, pet foods, vegetables, fruit, seafood, poultry, soup and pasta, and dairy. Printed Flexible Packaging includes flexible packaging made from thin-gauge, value-added rotogravure, flexographic and combination printed film, including performance laminations, rotogravure cylinder engraving, and global brand artwork management, which are used in the food markets for confectionery and gum, hardbaked goods, coffee, processed foods, beverages, snack foods, pet foods, home and personal care.
Paper and Industrial Converted Products
During the year ended December 31, 2011, the Paper and Industrial Converted Products segment accounted for approximately 42% of the Company’s consolidated net sales. This segment serves its markets through 189 plants on five continents. Sonoco’s paper operations provide the primary raw material for the Company’s fiber-based packaging. Sonoco uses approximately 50% of the paper it manufactures. This vertical integration strategy is supported by 21 paper mills with 31 paper machines and 50 recycling facilities throughout the world. The products, services and markets of the Paper and Industrial Converted Products segment include Tubes and Cores, Paper, Sonoco Recycling, Inc. and Wire and Cable Reels.
Tubes and Cores includes paperboard tubes, cores, roll packaging, molded plugs, pallets, pallet components, concrete forms and rotary die boards, which are used in the food markets for construction, film, flowable products, metal, paper mill, shipping and storage, tape and label, textiles and converters. Paper includes recycled paperboard, chipboard, tubeboard, lightweight corestock, boxboard, linerboard, corrugating medium, specialty grades and recovered paper, which are used in the food markets for converted paperboard products, spiral winders and beverage insulators. Sonoco Recycling, Inc. includes collection, processing and recycling of old corrugated containers, paper, plastic, metal, glass and other recyclable materials. Wire and Cable Reels includes steel, nailed wooden, plywood, recycled and polyfiber reels, which are used in the food markets for wire and cable manufacturers.
During 2011, the Packaging Services segment accounted for approximately 10% of the Company’s consolidated net sales. The products, services and markets of the Packaging Services segment includes Service Centers, Point-of-Purchase (P-O-P) and Paperboard Specialties.
Service Centers include packaging supply chain management, including custom packing, fulfillment, primary package filling, scalable service centers, which are used in the food markets for personal care, baby care, food, electronics, hosiery, office supplies and toys. P-O-P includes designing, manufacturing, assembling, packing and distributing temporary, semipermanent and permanent P-O-P displays, as well as contract packaging, co-packing and fulfillment services, which are used in the food markets for automotive, beverages, confectionery, electronics, cosmetics, food, fragrances, home and garden, liquor, medical, office supply, over-the-counter drugs, personal care, sporting goods and tobacco. Paperboard Specialties includes custom-printed Stancap glass covers, Rixie coasters and other paper amenities, which are used in the food markets for hotels and resorts, food and beverage, healthcare facilities, catering services, transportation and advertising.
During 2011, the Protective Packaging segment accounted for approximately 4%, of the Company’s consolidated net sales. The products, services and markets of the Protective Packaging segment Protective Packaging, Protexic Brands, Thermosafe Brands and Alloyd Brands.
Protective Packaging includes protective packaging (Sonopost technology, Sonobase carriers, Sonopop systems) and contract package testing, which are used in the food markets for household appliances, heating and air conditioning, office furnishings, automotive, fitness equipment, lawn and garden, promotional and palletized distribution. Protexic Brands includes fabricated foam, corrugated paperboard, molded EPS, molded EPP, antistatic fabricated foam solutions, nesting and stacking trays, molded foam dunnage, totes and tote inserts, energy-absorbing components for automobiles, flotation components and insulation components, which are used in the food markets for high technology, consumer electronics, automotive, appliances and medical devices.
Thermosafe Brands include insulated shippers, durable transport chests, PolarPack gel packs, U-tek phase change materials, lab/pharma/diagnostic specimen transport, refrigerant materials, ShipSafe edge and corner protection products and temperature assurance solutions, which are used in the food markets for temperature-sensitive pharmaceuticals and food. Alloyd Brands includes high-visibility packaging, printed products and blister packaging machines, which are used in the food markets for retail and medical markets.
Sonoco Products Co
1 N. Second St.
HARTSVILLE SC 29550