Pactiv Evergreen Inc. is a manufacturer and distributor of fresh foodservice and food merchandising products and fresh beverage cartons in North America. The company is a subsidiary of Packaging Finance Limited.
The company produces a broad range of products that protect, package and display fresh food and beverages for consumers who want to eat or drink fresh, prepared or ready-to-eat food and beverages conveniently and with confidence. The company supplies its products to a broad and diversif...
Pactiv Evergreen Inc. is a manufacturer and distributor of fresh foodservice and food merchandising products and fresh beverage cartons in North America. The company is a subsidiary of Packaging Finance Limited.
The company produces a broad range of products that protect, package and display fresh food and beverages for consumers who want to eat or drink fresh, prepared or ready-to-eat food and beverages conveniently and with confidence. The company supplies its products to a broad and diversified mix of companies, including full service restaurants (also referred to as FSRs), quick service restaurants (also referred to as QSRs), foodservice distributors, supermarkets, grocery and healthy eating retailers, other food stores, food and beverage producers and food processors. The company operates primarily in North America.
Segments
The company manufactures and sells products through the following two reportable segments:
Foodservice
The company’s Foodservice segment manufactures a broad range of products that enable consumers to eat and drink where they want and when they want with convenience, including food containers, drinkware (such as hot and cold cups and lids), tableware, serviceware and other products that make eating on-the-go more enjoyable and easy to do. Foodservice’s customer base includes chain restaurants, FSRs, established and emerging QSRs, distributors, institutional foodservice (such as airports, schools and hospitals) and convenience stores.
Food and Beverage Merchandising
The company’s Food and Beverage Merchandising segment manufactures products that protect and attractively display food and beverages while preserving freshness. Food and Beverage Merchandising products include cartons for fresh refrigerated beverage products, primarily serving dairy (including plant-based, organic and specialties), juice and other specialty beverage end-markets, clear rigid-display containers, containers for prepared and ready-to-eat food, trays for meat and poultry and egg cartons. Food and Beverage Merchandising also manufactures and supplies integrated fresh carton systems, which include printed cartons, spouts and filling machinery. Prior to October 2024, it also produced fiber-based liquid packaging board for its internal requirements and to sell to other fresh beverage carton manufacturers.
Beverage Merchandising Restructuring
In the second quarter of 2023, the company combined its legacy Food Merchandising and Beverage Merchandising segments to create the company’s current Food and Beverage Merchandising segment. At the same time, the company also reorganized the management of certain product lines from its Foodservice segment to the company’s Food and Beverage Merchandising segment.
This change in segments occurred as part of a broader restructuring of the company’s legacy Beverage Merchandising segment, which the company refers to as the Beverage Merchandising Restructuring. This restructuring involved, among other things:
The closure of the company’s Canton, North Carolina mill, which the company refers to as the Canton Mill, including the cessation of mill operations, during the second quarter of 2023.
The closure of the company’s Olmsted Falls, Ohio converting facility and concurrent reallocation of certain production to the company’s remaining facilities during the second quarter of 2023.
Additionally, the plan included the exploration of strategic alternatives for the company’s Pine Bluff, Arkansas mill and the company’s Waynesville, North Carolina extrusion facility, which the company collectively refers to as the Facilities. On July 12, 2024, the company entered into a definitive agreement to sell the Facilities and associated assets and liabilities to an affiliate of Suzano S.A., or Suzano, which the company refers to as the Pine Bluff Transaction. The Pine Bluff Transaction closed on October 1, 2024. The company also entered into a long-term liquid packaging board supply agreement with Suzano upon the closing of the Pine Bluff Transaction.
Finally, on January 10, 2025, the company completed the sale of the assets and liabilities associated with the Canton Mill, which the company refers to as the Canton Transaction.
Strategic Initiatives
The company’s strategic initiatives are to drive profitable growth by effectively balancing where and how the company focuses its product development, sustainability, innovation and investment efforts to deliver reliable and consistent above market growth in a capital efficient way; package a better future, by operating with integrity, conducting business in a responsible manner; and optimize the company’s processes and drive strategies for effective change management while advancing the company’s technology.
In 2022, the company sold its 50% interest in a joint venture with Naturepak Limited, which is a provider of fresh liquid carton and packaging systems in the Middle East and North Africa region, and the company’s carton packaging and filling machinery businesses in China, Korea and Taiwan. In addition, the company divested its remaining closures businesses during the fourth quarter of 2022 and the first quarter of 2023. During the fourth quarter of 2024, the company also completed the sale of its 50% interest in a joint venture with Ducart, a packaging provider in the Middle East region.
Customers
The company supplies its products to a broad and diversified mix of companies, including FSRs, QSRs, foodservice distributors, supermarkets, grocery and healthy eating retailers, other food stores, food and beverage producers, food packers and food processors. The company’s customers range from large blue-chip multinational companies to national and regional companies to small local businesses. The company has developed strong and longstanding relationships with its customers, including many leading restaurants and brands. In 2024, one customer in the company’s Foodservice segment accounted for sales representing approximately 10% of the company’s consolidated net revenues. The company’s ten largest customers accounted for approximately 44% of net revenues in 2024.
Seasonality
The company’s business does not experience high seasonality due to the complementary nature of the seasonal effects on the company’s segments, though portions of the company’s business are moderately seasonal. The company’s Foodservice operations and the food merchandising operations of the company’s Food and Beverage Merchandising segment peak during the summer and fall months in North America when the favorable weather and harvest and holiday seasons lead to increased consumption, resulting in greater levels of sales in the second and third quarters. The customers of the beverage merchandising operations of the company’s Food and Beverage Merchandising segment are principally engaged in providing products that are generally less sensitive to seasonal effects, although they do experience some seasonality as a result of increased consumption of milk by school children during the North American academic year, resulting in a greater level of carton product sales in the first and fourth quarters (year ended December 2024).
Distribution and Marketing
The company has a large, well-invested manufacturing base and a hub-and-spoke distribution network in the United States and in the international geographies in which the company operates. Most of the company’s assets are in the United States, which allows the company to provide an extensive offering of the U.S.-manufactured products to the company’s customers. The company’s manufacturing footprint and distribution network provide the company a competitive advantage in each of the company’s segments. The company’s Foodservice segment is the only manufacturer among its competitors in the United States with an extensive nationwide hub-and-spoke distribution network, enabling customers to buy across the company’s entire product offering. The food merchandising operations of the company’s Food and Beverage Merchandising segment is a U.S. manufacturer with well-invested facilities within close proximity to the company’s customer base. The company has an unrivalled product offering in the North American foodservice and food merchandising markets and a ‘one-face-to-the-customer’ service model. This service model uses one sales representative per account to produce one order with multiple SKUs supported by one customer service representative who is responsible for one shipment with one invoice. The beverage merchandising operations of the company’s Food and Beverage Merchandising segment is well positioned in the United States as a manufacturer of both fresh beverage cartons and filling machinery, which allows the company to provide excellent customer service.
The company is able to offer substrates and product lines to match changing market needs efficiently. This enables the company to scale production in response to the requirements of the company’s customers and trends in the market, including, for example, increasing the company’s use of recycled and recyclable material to produce a greater number of sustainable products. The company has strategically invested in flexible manufacturing assets that can be quickly converted to produce alternative products. The company’s broad manufacturing base includes approximately 1,100 production lines.
As of December 31, 2024, the company’s Foodservice segment had 22 manufacturing plants, and the company’s Food and Beverage Merchandising segment had 28 manufacturing plants, including 5 U.S. beverage carton manufacturing plants. Both segments share the use of 36 warehouses and 7 regional mixing centers. Food and Beverage Merchandising also had one filling machinery plant. Each of the company’s manufacturing plants is managed by a manufacturing director, and the company uses lean operating practices and information systems to measure performance against objective metrics and to optimize manufacturing efficiency and reduce cost.
Intellectual Property
As of December 31, 2024, the company held more than 200 patents related to product design, utility and material formulations.
Research and Development
In 2024, the company spent a total of $36 million on research and development efforts.
History
Pactiv Evergreen Inc., formerly known as Reynolds Group Holdings Limited, was founded in 1880. The company was incorporated in 2006 under the Companies Act 1993 of New Zealand.
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