Sonoco Cutting Edge Packaging Solutions in a Global

Sonoco: Cutting Edge Packaging Solutions in a Global Market Stacy Cruz, Steven Lee, Valerie Lee, Laurin Long December 9, 2013

The Company Facts • • One of the largest packaging manufactures in the world. A multi-billion dollar company Sonoco’s mission plan is to provide their customers with packaging solutions around the world. The company employs 16, 000 employees, has 347 operations in 34 countries, and serves customers in 85 nations. The Products • • The products of the company vary from having containers and carriers made of paper, plastic, wood and metal. These products serve industrial and consumer markets worldwide.

History • • Began on May 10, 1899, in Hartsville, SC. The Company was started by the Coker family. The very first product of the company was a cone-shaped paper yarn carrier used for winding and transporting yarn. As their CEO has stated, “We have grown from a tiny acorn to a mighty oak”.

Economics and South Carolina • • • The company annually contributes more than one billion dollars to South Carolina’s economy. creating nearly 9, 300 jobs. Generates more than $473 million in income for South Carolinians.

DIVERSITY • Sonoco promotes diversity and strives to create relations ships with suppliers that are diverse. • 51% owned, managed, or controlled by one ore more women. • 51% owned, managed, or controlled by a minority. “Sonoco believes that to achieve our goals relating to sustainability, it is critical that we establish a capable, qualified, competitive and diverse team of suppliers. ”

EMPLOYMENT: SOUTH CAROLINA • • 1700 South Carolinians employed. More than 9300 jobs statewide. Sonoco has contributed to more than $1 billion yearly to South Carolina’s economy and nearly $35 million to the state in tax revenues. There are twelve locations throughout South Carolina that provide services in recycling, industrial, and consumer production: • Charleston • Hartsville • Union • Anderson • Greenville/Spartanburg • Greer • Columbia

EMPLOYMENT: WORLDWIDE • “We believe employee diversity is smart business; the variety of thought, energy and insight provided by a diverse work force gives us an advantage in today’s global economy. ” • • • A large international presence with many divisions throughout the world such as North and South America, Europe, Asia, and Australia/New Zealand Over 9, 000 jobs worldwide 12 divisions, 347 operations in 34 countries and 85 nations. 19, 900 employees that speak 18 languages in 34 countries. Jobs from marketing, call center work, to plant operations. To create the maximum benefit of working outside of the country, Sonoco has teamed up with different global companies and suppliers to help the global initiative of providing and creating a greener footprint worldwide.

How Sonoco Became an International Company • International Business -Transactions between 2 or more countries. • In 1923 Sonoco entered its first joint venture in Manchester, England. • Joint venture led to expansion of plants in England, Ireland, Holland, Germany, South Africa, and India. • Currently Sonoco has 347 operations in 34 countries.

Sonoco’s Growth and Revenue • • Revenue of US $4. 5 billion. Sonoco maintains profitability by offsetting higher raw materials cost inflation by implementing necessary price increases (Sanders). • Since 1925, Sonoco has never failed to pay dividends to their shareholders.

Sonoco’s Objective • To use Innovative Packaging Solutions (IPS) for improving customers’ brands and overall product business strategies. Global Rigid Paper Global and Closures Flexibles Global Plastics Protective Solutions Sonoco Recycling

Sonoco’s Products • Sonoco’s packaging advantages: • Cost advantages. • Support sustainability goals. • Adds shelf appeals and performance. • Typical products are innovative easy-open, re-closeable bags and • specialty pouches for cookies. An example: Smartseal™ and Ultraseal®. Smartseal™ Ultraseal®

Sonoco’s Supply Chain • Sonoco Packaging Solutions (SPS): • Transportation management. • Sub-contracting warehousing and distribution. • Packaging materials sourcing. • Logistic sourcing and information management. • Packaging life-cycle management. • Extended enterprise asset management.

International Business Variables of Sonoco • • Subject to local laws and regulations. Sonoco reserves money for environmental liabilities to cover future damages if needed. • Sonoco uses foreign exchange contracts when dealing with foreign currency. • Sonoco’s competitors are Bemis Company, Inc. , Caraustar Industries Inc. , and Rock-Tenn Company.

International Business Risks of Sonoco • Political Risk • Sonoco conflict mineral policy. • Environmental Risks • Weather or Pandemic Protocol.

Current and Future International Projects of Sonoco • Production and distribution site of Sonoco Thermo. Safe™ in Duren, Germany. • Strategically located to serve as the primary distribution and warehousing hub for Middle East and Western Europe. • Testing a biomass boiler in Hartsville, SC to save money and reduce carbon footprint.

Women in Business Sonoco At a Glance