Sonoco Products Company (Sonoco) operates as a global designer, developer, and manufacturer of a variety of highly engineered and sustainable packaging serving multiple end markets. The company’s first product is a cone-shaped paper yarn carrier used for winding and transporting yarn. The company produces cones in the United States.
As of December 31, 2024, the company had approximately 315 locations in 40 countries, serving some of the world’s best-known brands around the globe. Sonoco is comm...
Sonoco Products Company (Sonoco) operates as a global designer, developer, and manufacturer of a variety of highly engineered and sustainable packaging serving multiple end markets. The company’s first product is a cone-shaped paper yarn carrier used for winding and transporting yarn. The company produces cones in the United States.
As of December 31, 2024, the company had approximately 315 locations in 40 countries, serving some of the world’s best-known brands around the globe. Sonoco is committed to creating sustainable products, services, and programs for the environment and the company’s customers, employees, and communities that support its corporate purpose: Better Packaging. Better Life.
On December 4, 2024, the company completed the acquisition of Eviosys, Europe’s leading food cans, ends and closures manufacturer, from KPS Capital Partners, LP (KPS). The transaction advances Sonoco’s portfolio transformation strategy to simplify and realign its portfolio and position the company for long-term growth and value creation. The transaction is expected to expand Sonoco’s global leadership in metal food can and aerosol packaging and facilitate Sonoco’s ability to partner with global customers and advance innovation and sustainability in metal packaging offerings.
Segment Reporting
The company operates through two segments: Consumer Packaging and Industrial Paper Packaging, with all remaining businesses reported as All Other.
Consumer Packaging
The operations in this segment consisted of approximately 125 plants throughout the world as of December 31, 2024. Products within the Consumer Packaging segment consist of rigid packaging (paper, metal, and plastic), primarily serving the consumer staples market focused on food, beverage, household, personal, and pharmaceutical products.
The company’s rigid paper containers are manufactured from 100% recycled paperboard provided primarily from Sonoco global paper operations. These paper products are primarily used in the food and beverage markets including snacks, baked goods, powdered drinks, and confectionary goods. With the acquisitions of Titan Holdings I B.V. (Eviosys) in December 2024 and Metal Packaging in January 2022, the company expanded its manufacturing capability in steel and aluminum metal fabrication beyond its existing metal ends and closures products to include metal food and household packaging products for vegetables, tomatoes, fruit, spray cleaners, paint, and other products.
In 2024, Sonoco’s rigid paper containers were the company’s largest revenue-producing group of products and services, representing approximately 27% of the company’s consolidated net sales in the year ended December 31, 2024.
Industrial Paper Packaging
This segment served its markets through approximately 166 plants on five continents as of December 31, 2024. Sonoco’s paper operations provide the primary raw material for the company’s fiber-based packaging. Sonoco uses approximately 53% of the paper it manufactures, and the remainder is sold to third parties. This vertical integration strategy was supported by 21 paper mills with 27 paper machines throughout the world as of December 31, 2024. The company also operates 17 recycling facilities in the United States capable of recycling old corrugated containers, paper, plastics, metals, and other recyclable materials that can be processed back through the Sonoco manufacturing ecosystem. In 2024, Sonoco had the capacity to manufacture approximately 2 million tons of recycled paperboard per year. Products within the Industrial Paper Packaging segment consist primarily of goods produced from recycled fiber including paperboard tubes, cores, cones and cans; partitions; paper-based protective materials; and uncoated recycled paperboard for high-end applications, such as folding cartons, can board, and laminated structures.
Products across this segment support multiple end markets in consumer staples (food and beverage, food distribution, household and personal products), consumer discretionary (home building, appliances, apparel, and home furnishings), and industrials (construction and building products, and industrial distribution), as well as various other end markets. In 2024, Sonoco’s tubes and cores products were the company’s second largest revenue-producing group of products.
All Other
The operations in All Other consisted of approximately 24 plants throughout the world as of December 31, 2024. Products within the All Other businesses consist of a variety of packaging materials including plastic, paper, foam, and various other specialty materials. All Other businesses serve a wide variety of end markets including consumer staples, consumer discretionary, and industrial.
Dispositions
On April 1, 2024, the company completed the sale of Protective Solutions business (Protexic), part of the All Other group of businesses, to Black Diamond Capital Management, LLC. This business provided foam components and integrated material solutions for various industrial end markets.
Product Distribution
Each of the company’s operating units has its own sales staff and maintains direct sales relationships with its customers. Some of the units have service staff at the manufacturing facility that interact directly with customers. The Industrial Paper Packaging segment and certain operations within the Consumer Packaging segment have customer service centers located in Hartsville, South Carolina, which are the main contact points between their North American business units and their customers. Divisional sales personnel also provide sales management, marketing, and product development assistance as needed. Typically, product distribution is directly from the manufacturing plant to the customer, but in some cases, product is warehoused in a mutually advantageous location to be shipped to the customer as needed.
Patents, Trademarks, and Related Contracts
Most inventions and product and process innovations are generated by Sonoco’s development, marketing, and engineering staff, and are important to the company’s internal growth. Patents have been granted on many inventions created by Sonoco staff in the United States and in numerous other countries. Patents, trademarks, and proprietary technology are also acquired through acquisitions and business combinations. The 2024 acquisition of Eviosys resulted in the company acquiring trademarks, including Eviosys, Mivisa, Easy Lift, and Bican, among others. Patents and proprietary technology are managed globally by a Sonoco intellectual capital management team through the company’s subsidiary, Sonoco Development, Inc. (SDI). SDI globally manages patents, trade secrets, confidentiality agreements, and license agreements. Some patents have been licensed to other manufacturers, often as part of a larger agreement, such as a toll manufacturing agreement. Sonoco also licenses patents from outside companies and universities. U.S. patents typically expire twenty years after filing, and patents on new innovations replace many of the abandoned or expired patents. A second intellectual capital subsidiary of Sonoco, SPC Resources, Inc., globally manages Sonoco’s trademarks, service marks, copyrights, and internet domain names. Most of Sonoco’s products are marketed worldwide under trademarks, such as Sonoco, SmartSeal, Sonotube, Sealclick, Sonopost, and UltraSeal, among others. Sonoco’s registered web domain names provide information about Sonoco, including its people, products, locations, and governance. Trademarks and domain names are licensed to outside companies, utilizing quality control metrics, where appropriate.
Seasonality
Although demand for the majority of the company’s products is not seasonal to any significant degree, the company’s Metal Packaging operations generally experience higher sales and operating profits during the second and third quarters of the year as demand for certain products increases during the peak of the food packaging season.
Dependence on Customers
On an aggregate basis during 2024, the five largest customers in the Consumer Packaging and Industrial Paper Packaging segments accounted for approximately 35% and 10%, respectively, of each segment’s net sales. The five largest customers in the All Other group of businesses accounted for approximately 21% of the group’s net sales.
Research and Development
The company's research and development costs totaling approximately $23,000 in 2024.
History
Sonoco Products Company, a South Carolina corporation, was founded in 1899 as the Southern Novelty Company.