Graphic Packaging Company (GPK) The Wells Fargo 2024 Industrials Conference summary

Company overview and strategy

• Operates a $9 billion consumer packaging business with 95% of sales from consumer-interfacing packages.

• Business model is designed for margin stability and growth, supported by 15 acquisitions and significant capital investments over the past decade.

• Focuses on both branded and private label products, with a strong presence in North America and Europe.

• Maintains deep, long-term relationships with CPGs and QSRs, emphasizing value and innovation.

• Strategic capital allocation prioritizes areas with clear competitive advantage and strong returns.

Market trends and consumer behavior

• Inflation has pressured consumers, leading to shifts from branded to private label and increased at-home consumption.

• Food service remains a long-term growth platform, with ongoing conversions from foam and plastic to fiber-based solutions.

• European market offers significant opportunity, driven by regulatory support for fiber-based packaging and consumer preference for renewables.

• Innovations developed in Europe, such as Boardio, are migrating to North America, expanding addressable market opportunities.

Innovation and product development

• $15 billion addressable market includes trays, cups, and canisters, with transitions ranging from plug-and-play to multi-year investments.

• New Rainier coated recycled paperboard enables entry into healthcare and beauty packaging, replacing higher-cost alternatives.

• Innovation engine expected to drive 200 basis points of organic sales growth in the second half of the year.