Derek Hindle - RPC’s 153 manufacturing sites in 33 countries joining forces with Berry’s give us a reach of approximately 290 manufacturing sites and about 48.000 employees worldwide with an estimated turnover of US $13 billion (net sales). 57% of the sales are being generated in North America, and 35% in Europe, with 3% in the Asia Pacific region and another 3% in Latin America.
What is the strategy behind this move?
Derek Hindle - It was a natural fit as both activities are quite complementary. This merger helps us increase our global reach, quality, and service. We both have built long term relationships with our clients and will be able to share processes and take the best of each business. This will help us discipline our costs and raise manufacturing efficiency. We will be able to offer differentiated standardization and customization capabilities, but also premium, low-cost, and sustainable solutions.
Now with Berry, RPC Bramlage, who is well known for its high-end pumps and airless systems, now has the manufacturing footprint in the US to transfer its technology and vice-versa with US technology and know-how brought to European sites. We are now able to offer local, in-market presence with an extensive product breadth and selection.
Sustainability is a key concern within the beauty industry, how do you intend to answer this sensitive issue?
Derek Hindle - We have been making steps towards sustainability in our products and business, for example working towards reducing our water and energy consumption in our manufacturing plants and in the end, produce a cleaner product. Again, best practices will be exchanged within the new organization and synergies will be found to make our company even more sustainable.
On the one hand, we are working on a range of refillable packaging. This technology will be spread across all our manufacturing facilities. We are extending the current Natura Pack range, to implement the solution into other products including pumps system, deodorant, dispensers, etc. Our pumps are an added-value product, which shouldn’t be thrown out once the packaging is empty. We will offer our client the ability to order separable packaging with refillable containers, jars, and separate dispensers, pumps and caps. External parts then become more premium with a diversity of decor, and the containers can also be decorated and adapted to seasonal or market needs. Brands will be able to encourage consumers towards loyalty when they reorder refillable product online for instance.
On the other hand, the acquisition gives Berry the ownership of recycling facilities, with RPC bpi group, one of Europe’s largest recyclers of polythene waste, which provides the current market with Post Consumer Recycled (PCR) plastics.
With regards to the company name, will RPC, M&H and other brands within the portfolio remain active?
Derek Hindle - Some brands have a lot of equity, like M&H being well-known for small lots with very quick reaction time for instance, or Bramlage, known for high-end jars and dispensers. At present these brands and a few others will be kept under the Berry Global banner.