Meadwestvaco Ideas That Improve and Build Our Customerʼs Buisnesses
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MeadWestvaco Ideas that improve and build our customerʼs buisnesses. Media Industries Analysis: Kacey Brenckle & Erin McFadden Packaging Consumer & Specialty Specialty Office Products Chemicals Papers MeadWestvaco The United States represents the largest market for Diamond Packaging of Rochester, NY, is one consumer packaging in the world. Total packaging volumes company that displays a strong ability to adapt to the increased to 472 billion units in 2002, and according to a changing face of the packaging industry. As a member Euromonitor forecast, are expected to increase over 9% to of the Global Packaging Alliance they are able to easily 515 billion units by 2007. The packaging industry, being reach a global market, and continue to invest in the latest largely influenced by changes in consumer lifestyles, has technologies enabling Diamond to maintain a strong been shifting towards convenient, functional, and portable presence in the consumer products market. Amcor Limited, packaging since 1998. Much of the traditional food based in Melbourne, Australia, is one of the worldʼs top packaging, including metal cans and glass bottles, has three packaging companies, targeting specific growth been experiencing a decrease in sales over recent years markets in the packaging industry including flexible with the increased consumption of flexible packaging. packaging, PET bottles, and closures for the food and Flexible packaging, including stand-up pouches, is beverage industries. Based on their product focus and currently the most widely used form of packaging in the global reach, Amcor will have the ability to obtain leading market as a whole, most likely due to its versatility and market positions within the high-growth segments of the ease of transport. packaging industry. Products and packaging that are able to offer consumers greater levels of convenience are expected to experience the most significant volume growth between 2002 and 2007. Health is also set to play an important part in the key developments in the market for packaged food in particular. Beverages also play an important role in the growth of packaging, with trends towards new bottle shapes, high-quality labels, and introductions of new brands. The cosmetics and personal care segment is creating new challenges for creative packaging, with increased need for high-quality labels with eye-catching graphics, and a move towards globalization that requires packages to be suitable for all markets world wide. Introduction pg 1 MeadWestvaco MeadWestvaco Corporation was established in In 2005, MeadWestvaco sold their entire papers 2002 with the January 30th merger between Mead segment, a consistent money loser for them, to the Corporation and Westvaco Corporation. Mead was investment firm Cerberus Capital Management. The founded in 1846 by Colonel David E. Mead, originally sale included mills in 5 states, as well as 900,000 acres named Ellis, Chaflin and Company. Mead was one of the of forestland in 6 states. Cerberus set up the divested leading producers of coated paper, coated paperboard, business as the independent company, NewPage and consumer and office products in North America. Corporation. As a result of the sale, MeadWestvacoʼs Westvaco was founded by William Luke in 1888, as packaging segment now accounts for three-quarters of the Piedmont Pulp and Paper Company. Westvaco was their sales, with the majority of the remainder coming the leading producer of paperboard and value-added from its international operations. MeadWestvaco retained packaging for media, pharmaceutical, and consumer about 1.2 million acres of forestland after the sale. markets, as well as a producer of specialty chemicals MeadWestvacoʼs vision is “To be a global leader in and coated papers. The two already well established our markets – admired for our innovative spirit, integrity companies form a powerful combination, focusing on and stewardship.” creating new products, expanding their markets, and strengthening customer relationships. The principle markets MeadWestvaco serves are automotive, beverage, consumer products, media and entertainment, and publishing industries, priding themselves on being the worldʼs largest supplier of media packaging, number one U.S. supplier of folding cartons to the pharmaceutical market, and second largest supplier of packaging for cosmetics. The company currently has offices operating in 29 countries, as well as global operations serving nearly 100 countries. Executive Summary pg 2 MeadWestvaco MeadWestvacoʼs largest market segment is packaging, responsible for 2/3 of their operations. The segment offers a wide range of consumer products packaging solutions for their customers including media, beverage and dairy, cosmetics, tobacco, pharmaceuticals, and healthcare. A variety of materials are produced by MeadWestvaco for these products including bleached paperboard, Kraft paperboard, linerboard, Coated Natural Kraft paperboard, and saturating Kraft. The companies maintain two paperboard brands, Custom Kote and Carrier Kote. Custom Kote is a high-performing paperboard with a smooth, glossy surface and high strength characteristics that ensure the integrity of the product. This is typically used to package high-value consumer products for the food, beverage, automotive, and healthcare industries. Carrier Kote is also a high- performing paperboard, but is specially designed to retain its strength in high moisture-level environments, making it especially useful for the beverage industry. Markets Served: Packaging pg 3 MeadWestvaco The consumer and offices products segment of MeadWestvaco manufactures, markets, and sells school products, time management products, and envelopes in North America and Brazil through retail and commercial channels. Some of their more popular consumer and office product brands include Mead, AT-A-GLANCE, AMCAL, Cambridge, Day Runner, Five Star, Trapper Keeper, and COLUMBIAN. Markets Served: Consumer & Office Products pg 4 MeadWestvaco MeadWestvacoʼs specialty chemical segment manufactures, markets, and distributes specialty chemicals derived from sawdust and by-products of the papermaking process. Some of these products include printing ink resins, activated carbon, emulsifiers, pine chemicals, water based polymers and asphalt innovations. The specialty papers segment of MeadWestvaco is recognized as a leader of technology for the decorative laminate industry. This division primarily utilizes Saturating Kraft for the manufacturing of decorative laminates for kitchen countertops, furniture, flooring, wall panels, and padded stock for electronic packaging. Other applications for specialty papers include medical pouches, road signs, furniture, and masking tape. Innovative features of Saturating Kraft include the ability to line concrete forms and absorb moisture and gases without compromising important elements of color and design. Markets Served: Specialty Chemicals & Papers pg 5 MeadWestvaco MeadWestvaco offers a wide variety of packaging options, with the ability to use multiple substrates and materials from paperboard to plastic, as well as injection- molded plastic. They offer services from package development to systems in order to deliver a complete range of packaging solutions. A variety of printing technologies, including rotogravure, offset lithography, and flexography, along with multiple finishing options allow for their services to be utilized in many different applications and industries. Through its many subsidiaries within consumer packaging, MeadWestvaco is able to provide services from package design, to product launch, to brand protection for the global marketplace. This flexibility has led MeadWestvaco to become the worldʼs largest supplier of media packaging, the number one supplier of folding cartons to the U.S. pharmaceutical market, and the second largest packaging supplier in the U.S. for cosmetics. Packaging Solutions pg 6 MeadWestvaco Coca-Cola Enterprises, Inc. has a multi-year agreement to purchase the FridgeMaster refrigerator MeadWestvaco will be printing Really Big Coloring pack from MeadWestvaco. The slimmed-down soft drink Books product line as well as handling order fulfi llment container offers eye-catching graphics, superior package through their Consumer and Offi ce Products division. strength, and ease of use due to the incorporation of a MeadWestvaco will distribute the product line from their dispenser into the design. According to Coca-Cola, the Sidney, New York operations center, allowing Really Big FridgeMaster has been hugely successful, and has been Coloring Books to offer an expanded line of educational noted as the companyʼs “most signifi cant innovation in and offi ce products. packaging since the plastic contour bottle was introduced in 1993.” Philips Lighting, the worldʼs largest lighting manufacturer, has selected MeadWestvacoʼs company MeadWestvacoʼs patented Dosepak design has Paxonix to streamline their packaging process across been adopted by Procter & Gamble Pharmaceuticals all lighting product lines in North America. The as the latest generation of packaging for their Actonel PaxPro workfl ow software, created by Paxonix, uses 35mg Once-a-Week dose. Dosepakʼs innovative design collaboration, digital asset management, and version incorporates a sealed package that provides maximum control to fully automate Philipsʼs packaging processes for child-resistance, but is still user-friendly for seniors. over 2,500 different lighting products. Key Clients pg 7 MeadWestvaco Crown Holdings,