Amcor considers divesting North American beverage business

The company is redefining its “core portfolio’ after acquiring Berry. Since finalizing that deal, Amcor has cut roles and begun closing some sites, and has hit some unexpected snags in North America.

• North American beverage business: During the quarter there were “operating challenges” at multiple high-volume sites, which resulted in higher freight and labor costs, executives explained. The $1.5 billion business now has “new and focused management” addressing challenges. “I’m going to say it very loud and clear: We’re not happy with the performance of the North American beverage business in the fourth quarter,” Konieczny said. Customers faced service issues. “Flexing our capacities with volumes is something that we’re very, very familiar with,” but clearly the business tried to do too much of that, he said. 
• Downsizing: Over the next few quarters, Amcor will work to stabilize and strengthen North American beverage business performance “before exploring alternatives,” Konieczny said. Across the company, Amcor reported that it has already cut approximately 200 roles since the acquisition was finalized in April. It has also closed one site and initiated the closure of four others. In addition to North American beverage, it’s also identified other less-aligned areas, including “smaller businesses with combined sales of ~$1 billion.” Possible outcomes might include divestitures, restructuring or joint venture ownership models.

Amcor considers divesting North American beverage business | Packaging Dive