Packaging manufacturer Greif divests its CPG unit7 May 2020
Greif, Inc. completed the sale of the consumer packaged goods (CPG) portion of its paper packaging division to Graphic Packaging Holding Company GPK in April for $85 million. The funds will be used to repay company-issued debt. Greif has lost 30.8% of its share value over the last year, according to research by Zacks investment firm.
Greif’s CPG unit produces annual revenues of more than $200 million and includes seven U.S. carton manufacturing facilities. Although profitable, the company is shedding this division to focus on its bulk container and industrial scale packaging as it looks to develop sustainable and reusable packaging solutions. The company acquired Caraustar Industries, Inc in February 2019 and is integrating this entity as part of its push to develop sustainable, industrial-scale packaging.
“Given our industrial focus, we were not the rightful owner of the CPG business,” said Pete Watson, Greif’s President and Chief Executive Officer. The sale, he said, “refocuses our business on our core industrial franchise and strategic growth priorities in Intermediate Bulk Container production and reconditioning and containerboard integration.”
Packing is a subject fraught with questions of sustainability. Producing eco-friendly packaging that is not susceptible to environmental influences and can keep products fresh is a challenge for many manufacturers. Nevertheless, consumers are continually asking for more corporate stewardship, and, according to the Nielsen Global Corporate Sustainability Report from 2018, 66% of consumers will pay more for brands committed to implementing environmentally friendly practices in manufacturing.
Graphic Packaging Holding Co is a logical candidate to be the new owner of the CPG portion of the Greif paper packaging division as the company manufactures folding cartons for frozen and non-frozen food and beverage products. However, the company is not the most innovative company when it comes to sustainability.
According to the company’s 2018 sustainability report, greenhouse gas emissions increased 3.3% for the year, rather than declining and helping the enterprise work toward the goal of a 15% overall reduction by 2025. Similarly, the company increased its use of non-renewable energy sources by 7.7% rather than working toward a 15% reduction. Despite this, 100% of the company’s products are recyclable and the business has exceeded its 15% goal of decreasing mill water effluent by 12%.
Long term, the sustainability of this CPG packaging unit will likely depend on the company taking a turn toward eco-friendliness. Goals and promises will not remain sufficient as consumers continue to look for more sustainable packaging alternatives. A 2018 study from Neilsen showed that almost half of U.S. consumers are likely to change what they buy to align with environmental standards. That number is likely to only increase.
Unilever to divest most of its tea business but keep RTD Lipton
7 Aug 2020
After a nearly seven-month review of its tea business, Unilever announced that it would divest the majority of its €3 billion ($3.5 billion) tea business, which includes tea brands PG Tips, Pukka Herbs and Tazo that generated €2 billion ($2.3 billion) ...Read more
Coca-Cola to launch Topo Chico hard seltzer brand in Latin America
6 Aug 2020
The hard seltzer market has seen phenomenal growth and now Coca-Cola is getting into the space with the launch of Topo Chico Hard Seltzer. Coke announced the alcoholic beverage will be released in select cities in Latin America later this year. In 2021...Read more
Chobani releases a functional non-dairy beverage
5 Aug 2020
Chobani released a non-dairy probiotic drink to further its efforts to expand out of animal-based dairy. The functional beverage is made with an oat base, has 80 calories, 11 grams of sugar and is made with organic, non-GMO ingredients.Read more
Blue Apron co-founder raises $10M to breed a superior chicken
31 Jul 2020
For decades the American poultry breeding business has been dominated by Cobb and Aviagen. However, Cook Ventures, a new breeder focused on slow-growth, heirloom chickens, may give its two major competitors a run for their money.Read more
Following second quarter earnings report, Coca-Cola looks to drop more brands
30 Jul 2020
After Coca-Cola announced the discontinuation of its Odwalla juice brand earlier this month, Coke's CEO James Quincey said during the company's second quarter earnings call that more of the CPG giant’s brands will be on the chopping block in the near f...Read more
Study: 2% of Brazil’s soybean farms are responsible for 62% of deforestation
29 Jul 2020
A new study published in the Journal of Science found that 20% of soy and 17% of beef imports into European from Brazil may be contaminated with illegal deforestation. Although a substantial figure, this deforestation is linked to a small number of far...Read more
Cyclospora cases plague U.S. lettuce industry
27 Jul 2020
On June 20, retailers in nearly all the Midwestern states in the U.S. recalled bagged garden salad products that were linked to an outbreak of Cyclospora infections. As of July 22, the Centers for Disease Control and Prevention reported 641 cases acros...Read more
Anheuser-Busch releases Busch Light Apple beer
24 Jul 2020
It’s not yet fall, but Anheuser-Busch launched an apple-flavored lager under its Busch Light line. This is the first time in 65 years that the Busch Beer brand has released a flavored beer product, and it will be available for a limited time in select ...Read more
UK government invests £705 million to fund new border infrastructure and management
23 Jul 2020
The transition period for the UK out of the EU will end on January 1, 2021, and with it will come the end of a the single market and customs union. To prepare for the exit and maintain trading relations with the EU, the UK government is investing £705 ...Read more
Pasture-raised egg producer Vital Farms files for IPO
22 Jul 2020
Pasture-raised egg company Vital Farms filed with the U.S. Securities and Exchange Commission (SEC) to raise up to $100 million in an initial public offering. The company plans to use the symbol VITL on the NASDAQ New York stock exchange.Read more
Are you a supplier
Here's what we can do for you
- Generate quality leads for your business
- Stay visible for 365 days of the year
- Receive product inquiries and respond to meeting requests directly
- Improve company online presence through Search Engine Optimisation