Unlock stock picks and a broker-level newsfeed that powers Wall Street.

Amcor Launches Paper-Based Packaging Solution for Dry Beverages

In This Article:

Amcor plc AMCR launched a paper-based refill pack for instant coffee and dry beverage products called the AmFiber Performance Paper stand-up pouch. This move is in line with the growing consumer demand for more sustainable refill packaging.

AMCR’s AmFiber Performance Paper stand-up pouch is designed for recyclability in most European countries due to its 85% fiber content.

The company intends to optimize the presentation and functionality while showcasing ongoing innovation in paper-based solutions and marking a significant step forward in circular refill packaging. The pouch can be used with coffee brands' existing packing machinery and is efficiently distributed due to its compact, lightweight design.

Details on Amcor’s AmFiber Paper Pouch

The AmFiber Performance Paper stand-up pouch specializes in preserving the aroma and taste of coffee products by providing solid seal integrity and barrier.

The AmFiber refill pouch offers a sustainable packaging solution, reducing the carbon footprint of dry beverage packaging by up to 73%. Additionally, the product helps brands minimize Environmental Product Responsibility fees, saving up to 70-90% compared with non-recyclable alternatives.

AMCR’s Focus on Growth

Amcor has been focusing on higher-growth, higher value-added, more packaging-intensive segments like healthcare, protein, pet food, premium coffee and hot fill beverage containers. The company has a leading position in each of these categories, which together generate more than $4 billion in annual revenues. The growth rates in all these segments are higher than the average across broader consumer markets, indicating significant improvement potential.

The company is investing more in these segments to capitalize on the growth prospects.

Amcor’s Q2 Performance

AMCR reported second-quarter fiscal 2025 (ended Dec. 31, 2024) adjusted earnings per share of 16 cents, which met the Zacks Consensus Estimate. The company reported earnings of around 16 cents in the year-ago quarter. Gains from improved volumes, continued strong cost performance and benefits from restructuring initiatives were offset by unfavorable impacts from price/mix.

Amcor’s revenues dipped 0.3% year over year to $3.24 billion. The downside was due to a 1% unfavorable impact of foreign exchange and a 1% impact of pass-through of lower raw material costs. The volume rose 2.3% from the year-ago quarter. Price/mix had an unfavorable impact of approximately 2% due to lower volumes in high-value healthcare categories. The top line missed the Zacks Consensus Estimate of $3.44 billion.