DS Smith and Coca-Cola replace plastic handles with “LIFT UP” cardboard based packaging innovation

Summary *Strong performance and cash flows despite operating in a generally disruptive demand environment *Most of our businesses were at or above expectations for the quarter due to commercial and operational excellence, with particular strength in the flexible packaging and rigid paper container businesses, offset by weakness in the metal packaging and industrial North American region businesses *Inventory management and destocking trends among our customers as well as inflationary pricing pressures led to lower and increasingly uncertain demand which impacted operational efficiency in our metal and industrials businesses *Remained disciplined in managing working capital to generate $349 million of operating cash flow in the first six months of 2023

UPM Specialty Papers, Lantmännen Unibake and Adara have co-created a new fibre-based packaging that replaces plastic bags as primary packaging for frozen baked goods. To minimize the use of fossil-based materials, the companies joined forces to create a solution where the plastic bags were eliminated by using UPM Asendo™ barrier paper as an inner liner in the corrugated cardboard box; the barrier paper layer ensures food safety and freshness. “The partnership with Lantmännen Unibake and Adara opened the opportunity to unite our expertise across the food packaging value network to create a renewable and recyclable packaging solution for frozen bread. Lantmännen Unibake and a third-party food industry development company conducted thorough testing and analysis on the impact of packaging materials on the taste of the frozen bread; as a result UPM Asendo was chosen as the inner liner for the cardboard box. The food safe UPM Asendo barrier paper layer has proven to offer the grease and moisture resistance needed while ensuring food safety,” says Kirsi Lahtela, Product Manager, UPM Specialty Papers.

Containerboard production was 5.2% higher compared to July 2016. The month-over-month average daily production compared to June 2017 was 1.7% higher. The containerboard operating rate for July increased from 96.3% to 97.9%, which was 2.8 percentage points higher compared to July of last year. Year-to-date production of containerboard for export is up 6.3%.