Pactiv Essay

1212 words - 5 pages

Pactiv is a leading producer of specialty packaging products, with sales of $3.1 billion. Pactiv has three operating segments: Consumer Products, Foodservice/Food Packaging, and Protective and Flexible Packaging. Its consumer products include plastic, aluminum and paper-based products, such as waste bags, food storage bags, and disposable tableware and cookware. Its foodservice/food packaging products include foam, clear plastic, aluminum, pressed paperboard and molded-fiber packaging for customers in the food distribution channel, including wholesalers, supermarkets and packer processors that prepare and process food for consumption. Pactiv's protective packaging products are generally used to protect and cushion various commercial and industrial products from the point of manufacture to the point of delivery or pick-up. The company manufactures, markets, and sells protective packaging for use in many industries, including the automotive, computer, electronics, furniture, durable-goods, building, and construction industries. Pactiv's flexible-packaging products are used mainly in food, medical, pharmaceutical, chemical, and hygienic applications, and often involve custom design.Many of Pactiv's products have strong market-share positions, including the number one position in key markets such as consumer waste bags and tableware, foodservice-foam containers, clear rigid-display packaging, foam trays, and aluminum cookware. In 2003, more than 80% of the company's sales came from products that hold the number one or number two share position in markets served, reflecting the strength of the company's brands, the breadth of its product lines, and its ability to offer one-stop shopping to customers.The company drives growth by developing new products and value-added product line extensions. In 2002 and 2001, the company spent $35 million and $40 million, respectively, on research and development efforts. Building on broad product lines and strong relationships with national distributors, in 2002, Pactiv completed the implementation of its customer-linked manufacturing system for the Foodservice/Food Packaging segment. Today, the systems and information-management infrastructure and distribution network are fully in place to support this segment's "One Face to the Customer" strategy, aimed at reducing supply-chain costs, enhancing customer service, and improving productivity.Pactiv's continuing focus on enhancing productivity and reducing manufacturing and logistics costs is key to improving the business' profitability. In 2003, a substantial portion of the company's research and development and capital spending was devoted to efforts to reduce costs and improve manufacturing and distribution productivity.Pactiv conducts business in highly competitive markets and faces significant competition in all of its product lines from numerous global, national, and regional companies of various sizes. Some competitors have available to them more extensive...

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