Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| And where we think we're going to deliver the most impact is with providing decent work and economic growth through our better for people and our better future pillars and how we're going to advance progress against responsible consumption and production, climate change and life on land through our better packaging and better future goals |
| We've got a strong business, investing capabilities |
| How do you make a convenient microwave food, deliver the crispness of a long-time family favorite, the grilled cheese sandwich? With our innovation teams, deep knowledge in microwave science, which -- yes, that's a thing, which I didn't know until I came to Graphic Packaging, but a really great team of microwave scientists, along with strong capabilities and overall packaging science, we were able to develop a carton that allowed the grilled cheese to be cooked in all the right places, allowing it to have the perfect bite throughout the sandwich |
| And as we do this, we've got a really good plan in place to achieve all of our goals in each of those 3 areas |
| We're really proud of the fact that in 2021, we joined as a participant to the UN Global Compact, really solidifying our commitment to embrace and act on those principles |
| We're very pleased that our progress has been recognized with favorable ratings by MSCI, Sustainalytics and ISS, and we are committed to continuing to assess our progress and transparently share how we're doing through participation with organizations like CBP and EcoVadis |
| And for them in the vision of the future, they have for their company, it became pretty clear that the Augusta mill, which is an outstanding mill with excellent people and a very good infrastructure is a better fit for them and what they really want to do over the long term than it is for Graphic Packaging |
| And lastly, we see a $15 billion sales opportunity for paperboard packaging, which gives us confidence in our path to a 2% growth in innovation to achieve our vision |
| It's not knock your socks off stuff, but the mere effect, we can decarbonize the way we did, and we can earn cost of capital that's a pretty great position to be in |
| In summary, demand for sustainable packaging is accelerating |
| So we're quite encouraged with what we see |
| And we're excited about that because we know as club store volume continues to grow, we're seeing that the multipack configuration is gaining in popularity |
| Secondly, our innovation -- our global innovation capability is competitively advantaged and ready to meet that opportunity |
| We are uniquely positioned with unmatched scale and capability to take advantage of those opportunities |
| As many of you know, we have a strong position in the beverage market today |
| But what we're really encouraged about here going forward is the fact that as we've rolled into 2024, our volumes actually -- to date through today are flat on a year-over-year basis, which is actually a very good thing because as you recall, last year, in the first quarter, we were actually up |
| I mean a paper-based packaging has the highest recovery rate of all packaging materials, more than aluminum and metal packaging, more than glass and far more than in plastic packaging |
| And we're creating a better future for our planet, by taking action to mitigate climate change in our contributions and reducing our footprint as well as by being responsible in the way we source forest products so that we're protecting valuable forest ecosystems |
| So that's what really gives us confidence in the year, but -- and a return to organic growth |
| And ultimately, we benefit and being able to do that |
| And as we've demonstrated in Europe, we can get really good ROICs by doing that |
| Our customer relationships are strong and growing, and we're managing them different than we were before, and we're getting paid for the value that we bring |
| I'm really pleased with the results that we generated |
| And this is an area where, obviously, it provides benefits in terms of insulation for beverage in the quick service market, and we'll continue to drive penetration of that across those markets |
| So we feel good about that over time |
| So one of the good outcomes that we have is in working even closer with our customers is that we are getting better visibility in terms of some of the aspects of their supply chain |
| We're creating better packaging by innovating our packaging and our manufacturing operations to drive out waste, improve recyclability and circularity of our packaging and really fuel a circular economy |
| And this portfolio is well positioned with unique solutions, that offer performance characteristics that either meet or exceed foam today |
| Look, that's an impressive customer portfolio by anybody's definition |
| The depth and breadth of that is really unmatched in the paper packaging world |
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| Look, by any measure, if you're a consumer goods company last year, food beverage or just actual goods, it was a very challenging year as consumers really pivoted in terms of their preferences in some cases, and our customers had to adapt to that in a real-time basis |
| And so over time, third-party indexes that really aren't accurate or have transparency hurt packaging companies and they ultimately hurt the customers as well |
| It's one of the reasons why several of the analysts in the room, you guys have had difficulty trying to track our pricing because we've been moving to a more value-added pricing model, which we'll get into a lot of detail today in terms of how we look at that, and it's going to continue to be the case |
| So Kraft Heinz came to us with a challenge |
| And then you add winter storm Uri in February of 2021, and we had a lot of challenges, a lot of force majeure letters, things we had to deal with |
| And that demand, in some case, was down |
| Our problem was that we weren't growing |
| Their retail partner came to them with a challenge |
| Volumetric growth down a few hundred basis points |
| More now than ever, the worst thing you can have if you're a CPG is to have a stock outage |
| One thing that I think is very clear with all of our customers is they have 2 big challenges in front of them right now |
| This was a challenge that we got from Nissin Cup Noodles |
| Fourth quarter -- third and fourth quarter, most pronounced down around 5.6% |
| But we're going to go down a path where that language is going to change, and I know that, that will be challenging, but we're going to |
| And just for the history, this is where Tetra Pak was developed in 1968, but they had an immense knowledge in [indiscernible] technology, which is being quite a loss right now |
| And yet we had a very big problem |
| So there's a lot of misinformation out there |
| Europe was really very, very slow in Q4, but it has returned back to more normalized levels |
| And kind of look through the first quarter, the open market paperboard sales that we have today will be down on a year-over-year basis, probably $60 million, $70 million or so |
| Also during COVID, we saw these massive shifts in overall demand, casual dining went way down |
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