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Flexible Packaging Segment Shrinks!

The Flexible Packaging Industry, long a large, fragmented space, has recently shown strong signs of consolidation with 6 major acquisitions in the last year. This action is long overdue as Flexible Packaging customers have been allowed to shrink down to 2-3 players per category (ie beer, beverages, confection, salty snack, household and pharmaceuticals) while packaging suppliers have been kept in the 8% - 10% market share range largely due to their customer's complaints. Long over due, industry leaders in both the United States and European Flexible Packaging by our estimates will have 25% - 30% market share should the pending acquisitions go through. The consequences will not be dire for users of Flexible Packaging rather in the long run costs should come down and innovation up.

Pub. Number: PMO_09_10_1

Surprise! Metal Container is for Sale!

Guess what? Metal Container Corporation is for sale! Yes, the long sought after self-make, beverage can arm of Anheuser-Busch Companies (InBev), has been put on the blocks. This comes after speculation that the heavily indebted InBev would sell North America’s #2 beverage can producer to help reduce debt incurred in acquiring AB. The “big three” commercial beverage can makers: Ball, Crown and Rexam, have been salivating over this one for many years. Nonetheless, the sale will be difficult based on valuation, regulatory issues and a drive for mix-asset improvement. Read on to better understand the dynamics of this transaction.

Pub. Number: PMO_09_04_1

PET Containers will Survive the Economic Crisis

The PET Container Industry has enjoyed a long history of double-digit growth. Not withstanding this growth, profitability and returns on capital invested have lagged. The future holds uncertainty and danger in terms of the operating conditions and the appropriate business model to serve fewer customers in a declining sales environment. Can the PET Container Industry recast itself into a value-generating position within the industry?

Pub. Number: PMO_09_03_1

Packaging Shares: What's Next? Who Knows?

Packaging Shares, on average, outperformed the broader markets in 2008. While the outperformance was modest, Packaging Shares still lost investors less money. Our 27-company universe was down just under 27% while a bellweather index like the S&P 500 was off 33%. Not all Packaging concerns did well, indeed many lost 30% or more of their value! Find out why some did better than the others and why some did much worse. Also, see why buying Packaging Shares is not an exact science.

Pub. Number: PMO_09_01_1

What Now?

What Now? Do recession induced "slash and burn" cost reduction initiatives really make sense? In many cases yes. But some companies set goals to create value even during a recession. Read how this can be done.

Pub. Number: PMO_08_12_1