Sonoco Products Company (SON): Business Model Canvas [Dec-2025 Updated]

You're trying to map out Sonoco Products Company's new playbook after their aggressive portfolio simplification, which saw them offload major units this year to focus on core metal and fiber. It's a classic industrial pivot, but the real test is execution against their $7.8 billion to $7.9 billion in projected 2025 net sales, all while aiming for $700M to $750M in operating cash flow. They are betting big on scale and sustainability across their 285 global sites. This is what focused manufacturing looks like now. Dive into the full Business Model Canvas below to see the key resources and revenue streams driving this strategy.

Sonoco Products Company (SON) - Canvas Business Model: Key Partnerships

You're looking at the core relationships Sonoco Products Company (SON) cemented or leveraged as of late 2025 to reshape its portfolio and drive efficiency. These aren't just vendor agreements; they represent major strategic shifts, like shedding non-core assets and optimizing spend.

The Key Partnerships section of the Business Model Canvas for Sonoco Products Company in late 2025 is heavily defined by significant divestitures that simplified the operating structure into two core segments: Consumer Packaging and Industrial Paper Packaging.

Major Divestiture Partners

The company finalized two major transactions that fundamentally altered its asset base and financial profile:

• Partnering with TOPPAN Holdings Inc. for the sale of the Thermoformed and Flexibles Packaging (TFP) business, which closed on April 1, 2025.
• Entering an agreement in September 2025 to sell the ThermoSafe unit to Arsenal Capital Partners, with closing expected by the end of 2025.

Here's a quick look at the financial scale of these key exits:

The ThermoSafe unit, prior to the sale, generated over $240 million in sales in 2024.

Strategic Sourcing Alliances

Sonoco Products Company relies on strategic suppliers for its primary inputs, which include recovered paper, paperboard, steel, aluminum, and plastic resins. Following global supply chain challenges, the company reports that the supply and availability of these raw materials are currently adequate to meet its needs.

A notable operational partnership involves Fairmarkit, an AI-powered sourcing solutions provider. Following a successful North America pilot, Sonoco Products Company expanded this partnership to streamline procurement across Latin America (LATAM) operations, standardizing workflows and centralizing supplier engagement.

• The LATAM expansion, announced January 7, 2025, saw Sonoco Products Company go live in just two weeks.
• Results from one year of working with Fairmarkit in LATAM included completing 15,000 sourcing events.
• This automation delivered a 3.4X return on investment and a 9% cost reduction.

Collaborative Customer Development

For innovation, especially around sustainability, Sonoco Products Company emphasizes deep collaboration with its global customer base. They report that their most successful new products have been joint innovations with major customers, often involving being deeply embedded in their planning processes.

This partnership focus directly supports Sonoco Products Company's 2025 sustainability commitments:

• Goal to increase the equivalent amount recycled, by weight, from 65% to 85% relative to volume placed into the marketplace by 2025.
• Goal to ensure approximately 75% of global rigid plastic packaging is capable of making the relevant on-package recyclable claim by 2025.

Finance: draft 13-week cash view by Friday.

Sonoco Products Company (SON) - Canvas Business Model: Key Activities

You're looking at the core engine room of Sonoco Products Company, the activities that drive their value proposition in late 2025. It's all about making and integrating packaging while actively reshaping the business footprint.

The primary activity is the global manufacturing of metal and rigid paper consumer packaging, alongside industrial packaging solutions. This operational scale is massive, supporting their stated purpose of Better Packaging. Better Life.^®

A significant current activity involves the integration of the Eviosys acquisition, which was completed in December 2024. The goal here is clear: executing the integration to achieve a target of $100 million in annual synergies by 2026, focusing on sourcing, supply chain, and manufacturing footprint optimization.

Sonoco Products Company maintains a vast global footprint to support this manufacturing. This network is a key enabler for their global customer base.

Portfolio simplification is another critical, ongoing activity. Sonoco Products Company is actively focusing on two core segments: Consumer Packaging and Industrial Paper Packaging, having divested non-core assets. For instance, the sale of the Thermoformed and Flexibles Packaging (TFP) business to TOPPAN Holdings for approximately $1.8 billion was expected to close in the second quarter of 2025. This streamlining helps focus capital deployment.

The company is actively investing capital to support this simplified structure, focusing on growth and automation. For example, in July 2025, Sonoco Products Company announced a specific $30 million capital investment to expand adhesives and sealants capacity, which is projected to add 100 million additional units of annual capacity. These investments are directed toward high-return opportunities within the core businesses.

Key activities related to operational efficiency include driving productivity savings. Sonoco Products Company generated $15 million in favorable productivity from procurement savings, production efficiencies, and fixed cost reduction initiatives in the second quarter of 2025 alone.

• Manufacturing metal and rigid paper consumer packaging globally.
• Executing the Eviosys integration to achieve $100 million in annual synergies by 2026.
• Operating a global network of 285 facilities across 40 countries.
• Portfolio simplification via divestitures, including the sale of TFP for approx. $1.8 billion, focusing on two core segments.
• Investing $360 million in capital projects for growth and automation in 2025.

Sonoco Products Company (SON) - Canvas Business Model: Key Resources

You're looking at the core assets Sonoco Products Company (SON) leans on to execute its strategy. These aren't just assets on a balance sheet; they are the engines of their packaging business.

The physical infrastructure is vast, giving Sonoco Products Company a true global reach. This includes the recently integrated Metal Packaging EMEA business, which significantly expanded its European and Asian footprint. As of mid-2025, the company operates across approximately 40 countries with about 285 operations serving customers worldwide. That scale helps them serve global brands locally.

Human capital is a major component here. Sonoco Products Company relies on approximately 23,400 employees with specialized engineering and operational expertise to run these complex facilities. That's a lot of specialized knowledge concentrated in packaging solutions.

For raw material security, the internal supply chain is critical. Sonoco Recycling is a key resource, annually collecting approximately 3 million tons of old corrugated containers, along with various paper, metal, and plastic grades. This network feeds their recycled paperboard mill network, providing a degree of insulation from volatile commodity markets.

Financially, the company is structured to generate significant liquidity. For the full year 2025, Sonoco Products Company's operating cash flow is guided to be between $700M to $750M. This strong cash generation supports ongoing investment and debt management.

Here's a quick look at the quantitative backbone of these key resources:

Beyond the tangible and financial, intellectual property is a necessary asset in this space. Sonoco Products Company maintains a portfolio of patents centered on their sustainable packaging innovations. These are the proprietary designs that differentiate their offering in the market.

You can also look at their market positioning as a resource itself:

• #1 global position in Metal and Fiber Cans.
• #1 global position in Industrial Paper Products.
• Track record of over 40 years of dividend increases.

Finance: draft 13-week cash view by Friday.

Sonoco Products Company (SON) - Canvas Business Model: Value Propositions

You're looking at the core value Sonoco Products Company delivers to its customers and the market as of late 2025, right after major portfolio shifts. It's about being the essential, sustainable partner for global brands.

Global leadership in high-value, sustainable metal and fiber packaging

Sonoco Products Company positions itself as a global leader, especially after integrating the Eviosys acquisition in December 2024, which significantly expanded its metal packaging footprint in Europe, the Middle East, and Africa. This leadership is backed by scale; in 2024, the company operated 285 facilities across 40 countries, employing over 23,400 people. The commitment to sustainability is quantified by science-based targets, aiming for a 25% reduction in Scope 1 and 2 greenhouse gas emissions by 2030 from a 2020 baseline. They are already exceeding energy goals, achieving a 9.6% reduction in energy use by 2024 against an 8% goal for 2030.

The financial scale of this leadership is evident in the latest figures. Trailing twelve months revenue ending September 28, 2025, reached $7.11B. For the third quarter of 2025 alone, net sales were $2.13B, marking a 57.3% year-over-year increase, largely driven by the metal packaging growth.

Providing all-paper and paper-bottom cans as a substitute for less sustainable substrates

A key value is the focus on material substitution, leaning heavily into fiber. Rigid paper containers were Sonoco Products Company's largest revenue-producing group in 2024, accounting for approximately 27% of consolidated net sales. This material is manufactured from 100% recycled paperboard provided internally. The strategic shift is clear in the segment mix: in 2005, the business was 56% industrial and 44% consumer; by Q1 2025, that flipped to 34% industrial and 66% consumer, reflecting the pivot toward consumer-facing, often paper-based, packaging solutions.

Supply chain security and scale for major global consumer and industrial brands

You get security because Sonoco Products Company is deeply integrated and focused. The company serves some of the world's best-known brands. The scale is what underpins this security. Following the sale of the Thermoformed and Flexibles Packaging business for approximately $1.8 billion, the focus is tighter. The integration of Eviosys is expected to yield $40 million in savings in 2025, part of a larger $100 million two-year synergy target. This integration treats the global metal packaging businesses as a single enterprise, enhancing reliability.

Here's a quick look at the projected financial performance underpinning this scale for the full year 2025, based on the latest guidance:

What this estimate hides is the impact of the ongoing divestiture of ThermoSafe, which executives hoped to resolve by the end of 2025.

Customized packaging solutions for food, beverage, and industrial markets

Sonoco Products Company provides a diverse portfolio, including rigid paper containers, metal food and household packaging, and closures. The focus on food and beverage is strong; in the U.S., metal food can volumes rose 5% in Q1 2025, with total food can units up 3.5% year over year. They are also actively investing in growth areas within this segment, like pet food and seafood opportunities in Eastern Europe for 2026. Furthermore, a $30 million capital investment in adhesives and sealants announced in July 2025 is set to add 100 million additional units of annual capacity.

A defintely simplified business structure for improved agility and focus

The move to a simpler structure is a core value proposition for stakeholders, promising better agility. In November 2025, Sonoco Products Company announced the consolidation of its Metal Packaging and Rigid Paper Containers businesses into two geographic units: Consumer Packaging EMEA/APAC and the Americas. This is designed to create a much simpler and more efficient operating model, allowing teams to be agnostic about the substrates offered. The company explicitly aims to generate 20% growth in total revenues in 2025 based on this simplified structure. This transformation is also supported by portfolio streamlining, including the sale of the TFP business for approximately $1.8 billion and the ThermoSafe sale for up to $725 million.

The expected results from this focus are significant:

• Projected adjusted net income growth for 2025: approximately 20% year over year.
• Projected adjusted EBITDA growth for 2025: approximately 30% year over year.
• The company expects to achieve 100 consecutive years of returning cash to shareholders via dividends.

Finance: draft 13-week cash view by Friday.

Sonoco Products Company (SON) - Canvas Business Model: Customer Relationships

Sonoco Products Company supports its B2B key accounts through extensive global infrastructure, with approximately 22,500 employees operating in 270 facilities across 40 countries as of November 2025.

The relationship structure is heavily weighted toward large, established CPG and industrial entities, evidenced by the segment revenue split in the third quarter of 2025:

This relationship is cemented by long-term, contract-based agreements, which support the company's strong pricing discipline; for instance, the Industrial Packaging segment achieved an adjusted EBITDA margin of 21% in Q3 2025, marking its eighth consecutive quarter of margin improvement.

Collaborative innovation is a core driver, particularly in sustainable product lines, where Sonoco Products Company works directly with major brands; for example, their 'Designed for Recycling' Paper-Based Snack Tube was developed in partnership with Kellanova.

The commitment to sustainability in these co-developed products is quantified by material composition:

• The paperboard can body in rigid paper containers is made with at least 95% fibers.
• The multi award-winning paper can solution is made of up to 95% recycled material.
• The paperboard can body features a minimum of 60% recycled content.

The high-touch service model is critical for complex, engineered packaging solutions, especially within the growing Consumer Packaging segment, which saw sales surge 117% year-over-year in Q3 2025. This deep engagement is also seen in core product lines, where U.S. Metal Packaging food can volumes rose 5% in the same quarter.

Sonoco Products Company is actively managing its portfolio to focus on these core relationships, exemplified by the agreement to sell its ThermoSafe business unit for up to $725 million to further simplify its structure.

Finance: draft 13-week cash view by Friday.

Sonoco Products Company (SON) - Canvas Business Model: Channels

You're looking at how Sonoco Products Company gets its packaging solutions to its B2B customers. It's a massive physical footprint supporting a global sales effort.

The primary channel relies on a direct sales force that manages relationships with global and regional B2B accounts across their diverse packaging segments. This is how they secure the large, recurring contracts that drive their business.

The physical backbone of this channel is their extensive manufacturing and converting presence, which is crucial for localized production and supply chain efficiency.

Here's a look at the scale of their physical assets and recent operational investment:

• Global network of 285 operations across 40 countries as of the second quarter of 2025.
• Total employee count was approximately 23,400 working across these operations.
• The company is focused on an integrated supply chain and logistics approach, aiming for just-in-time delivery to support their customers' production schedules.
• Productivity initiatives, including procurement savings and production efficiencies, delivered $15 million in favorable impact in the second quarter of 2025.
• Capital expenditures, net of asset sales, for the first nine months of 2025 totaled $248 million, funding growth and productivity projects.

For corporate and investor communications, the company uses its official digital presence.

• Company website and digital platforms for investor and corporate communications are found at the Investor Relations site: https://investor.sonoco.com/.

This table gives you a snapshot of the scale supporting these channels, using the latest reported figures for continuing operations:

The Consumer Packaging segment saw net sales grow 117% in Q3 2025, largely due to the Metal Packaging EMEA acquisition. That's how you move product when your channels are aligned.

Finance: draft 13-week cash view by Friday.

Sonoco Products Company (SON) - Canvas Business Model: Customer Segments

You're looking at the core buyers for Sonoco Products Company as they've streamlined their focus post-divestitures. The customer base is strictly B2B, centered around companies needing high-volume, specialized packaging solutions across consumer and industrial applications. Sonoco Products Company now organizes its customer base primarily around its two core global business segments: Consumer Packaging and Industrial Paper Packaging.

The Consumer Packaging segment is the dominant revenue driver, representing approximately 66% of the business as of late 2025. This segment serves customers requiring packaging for finished goods that reach the end consumer. For instance, in the third quarter of 2025, this segment generated net sales of $1.44 billion, a massive 117.2% year-over-year increase, largely due to the Eviosys acquisition.

The other major group is served by the Industrial Paper Packaging segment. These are industrial manufacturers needing fiber-based paper products and converting services. This segment's net sales were $585 million in the third quarter of 2025, which was flat year-over-year. The company also has an "All Other" category, which grew 1% to $108 million in Q3 2025.

Here's a quick look at the segment revenue contribution based on the third quarter of 2025 results:

Sonoco Products Company serves a wide array of industries, which you can map to their primary segments:

• Large multinational Consumer Packaged Goods (CPG) companies for food and beverage.
• Healthcare and personal care product companies.
• Industrial manufacturers requiring fiber-based paper products and converting services.
• Construction and textile industries utilizing paper-based carriers.

The company's global footprint supports these customers, as Sonoco Products Company operates in approximately 40 countries. The focus on metal packaging, especially in the EMEA region following the Eviosys acquisition, shows a direct targeting of large-scale food and beverage CPG customers there. The Industrial segment's customer base relies on Sonoco Products Company for core materials, like the paperboard used in tubes and cores.

The total consolidated net sales for the third quarter of 2025 reached $2.1 billion, marking a 57.3% increase from the prior-year quarter. This growth is heavily skewed by the acquisition-driven Consumer Packaging segment, which is now the largest component of the business at roughly 66%. Finance: draft 13-week cash view by Friday.

Sonoco Products Company (SON) - Canvas Business Model: Cost Structure

The cost structure for Sonoco Products Company centers on significant expenditures related to raw materials, a vast global operating footprint, and ongoing capital investment for maintenance and growth.

Raw material costs represent a primary component of the cost of goods sold. Sonoco Products Company relies heavily on inputs such as steel, aluminum, and recycled paperboard, with performance being sensitive to price fluctuations in these commodities. The company actively pursues procurement savings initiatives to mitigate these costs; for instance, it delivered $15 million in favorable productivity from procurement savings, production efficiencies, and fixed cost reduction initiatives over the prior-year quarter in Q2 2025.

Operating costs are substantial given the scale of Sonoco Products Company's global presence. As of Q2 2025, the company operated in approximately 285 locations across 40 countries. Managing this network involves significant fixed and variable operating expenses. Furthermore, the company incurs costs related to strategic adjustments, such as integration and restructuring activities. Sonoco Products Company noted higher restructuring costs in the third quarter of 2025 and is carrying out footprint rationalization in regions like Mexico and Europe.

The balance sheet management directly impacts the income statement through interest expense. Sonoco Products Company has aggressively used divestiture proceeds to manage its debt load. Specifically, proceeds from the sale of the Thermoformed and Flexibles Packaging (TFP) business were used to repay the outstanding $1.5 billion principal amount of borrowings under the 364-day term loan facility in 2025. Overall, total debt was reduced by approximately $1.7 billion in Q2 2025 using divestiture proceeds and operating cash flow. This deleveraging effort is intended to reduce future interest expense.

Capital expenditures are a necessary ongoing cost for maintaining and growing the asset base. Sonoco Products Company projected capital spending of $360 million for the full year 2025 for maintenance and growth projects [Required Figure]. Year-to-date figures show the commitment to this investment; capital expenditures, net of proceeds from sales of fixed assets, for the first nine months of 2025 totaled $248 million.

Here's a look at key financial metrics impacting the cost and investment profile as of late 2025:

The cost structure is also influenced by the ongoing strategic realignment, which involves specific cost centers:

• Global Network Scale: Operating approximately 285 locations across 40 countries.
• Restructuring Charges: Costs associated with footprint rationalization in Europe and Mexico.
• Working Capital Needs: Increased seasonal need for working capital related to Metal Packaging EMEA impacted operating cash flow in the first nine months of 2025.
• Interest Costs: Higher interest costs were noted as a factor impacting results in Q2 2025.

Sonoco Products Company (SON) - Canvas Business Model: Revenue Streams

You're looking at how Sonoco Products Company brings in its money, which is heavily tied to its core packaging segments following its recent portfolio simplification. The revenue streams are clearly segmented across consumer and industrial applications, supported by strategic pricing actions.

For the full fiscal year 2025, Sonoco Products Company projects its total net sales to fall within the range of $7.8 billion and $7.9 billion. Concurrently, the expectation for operational profitability, measured by Adjusted EBITDA, is set between $1.30 billion and $1.35 billion for the same period.

The primary sources of revenue flow from two main reportable segments, which are detailed below using the latest available quarterly figures to illustrate the current revenue mix:

The company's ability to maintain and grow revenue is significantly supported by its pricing power, which helps manage input cost fluctuations. Here are the key factors influencing revenue realization:

• Revenue from price increases to offset inflation and tariffs.
• Strong year-over-year growth in the Consumer Packaging segment, with Q3 sales up 117% compared to the prior year's continuing operations.
• Favorable pricing and productivity improvements driving adjusted operating profit growth across both core segments.
• Growth wins in specific end-markets like pet food and powdered nutrition contributing to future revenue visibility.

To be fair, the Industrial Paper Packaging segment saw its Q3 net sales remain flat at $585 million as volume declines offset year-over-year price increases, showing the mixed demand environment you have to manage.

Finance: review the sensitivity of the $7.8 billion to $7.9 billion net sales projection to a 1% change in commodity input costs by next Tuesday.