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MWV Outlines Profitable Growth Strategies for Global Packaging Business

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During a meeting with investors and analysts this past week, MeadWestvaco Corp., Richmond, Va., USA, detailed a profitable growth strategy for its global packaging business. Senior company leaders presented strategies for achieving average annual growth of 5% -10% by continuing to leverage the strong packaging platform the company has built to serve targeted end markets, including food, beverage, tobacco, personal care, home and garden, healthcare, as well as corrugated packaging in Brazil.

MWV highlighted the strategies it is executing across three principal growth levers—commercial excellence, innovation, and emerging markets—to deliver on the target. The company believes these strategies can deliver more than $1 billion of incremental revenue over the next three to five years.

"We have the ability to drive sustainable, profitable growth by bringing our packaging capabilities, including deep end-market knowledge and consumer insights, to create partnerships with our customers that leverage our entire global platform," said John A. Luke Jr., chairman and CEO. "We are growing with our customers, particularly in faster growing emerging markets where we already have significant and scalable platforms. As we deliver the packaging solutions our consumer packaged goods customers need to grow their businesses around the world, we are creating higher value for our shareholders."

In regard to commercial excellence, MWV detailed its approach to identifying top priority customers based on profit potential, and then building or enhancing partnerships with those customers to create innovative solutions. The company's strategy is centered on leveraging its broad packaging capabilities to grow its share of business with the world's largest and most successful consumer packaged goods and retail companies to take advantage of new and expanding revenue opportunities over the next three to five years.

In relation to the innovation growth lever, MWV provided a first-hand look at how the company is commercializing new products based on market and consumer insights. The company outlined how it is using consumer insights capabilities in conjunction with open innovation and expertise in materials science, and packaging design to accelerate speed to market with new products. MWV featured several examples of innovative new products that are in later stages of development. These innovations will help drive increased high-margin revenue over the next three to five years.

MWV noted that it has a long and successful history in emerging markets, and is already expanding its advantaged platform in Brazil (MWV Rigesa). But, it also reviewed strategies for growing its substantial business in China, as well as scaling up its participation in India. The company is addressing each region's unique needs and opportunities with a broad set of packaging capabilities and believes continued penetration of its packaging products and solutions in these markets will generate greater incremental revenue over the next three to five years.

MWV also detailed its transformed business model, which targets 5% - 10% average annual revenue growth. "We have built a strong business model that is already delivering improved financial performance," said Mark Rajkowski, SVP and CFO. "The profitable growth plans for our packaging businesses that we outlined today centered on packaging reflect a growth engine that will deliver higher operating margins and substantial cash flows that we will use to reinvest in our business and to increase returns to shareholders."


Xerium Technologies, Inc.