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Packaging credit: istock Consolidation Come together How the consolidation trend is impacting beauty packaging by Alex Wynne here has been a furry of M&A in the small brands which they then consolidate the internationalization of the industry Tpackaging sector over the past few and expand to take global, I believe that in necessitating a supplier presence on months. This trend is likely to accelerate in packaging it will be the same,” says Albéa all continents, ever-increasing price the future as it becomes more important for president and ceo François Luscan. pressures, and currency fuctuations in suppliers to achieve critical mass faced with If anyone has an understanding of the various markets as the main reasons for the growing size of their clients and the subject, it is Luscan: following a career in consolidation. “You need to be fnancially globalization of the industry. various divisions of Pechiney, he was in solid,” he says. “And you need critical Over the past year several deals have charge of integrating numerous beauty mass to be able to constantly innovate, been announced. These include RPC’s activities to create Alcan Packaging Beauty while at the same time reducing costs, acquisition of Dutch frm PET Power, which following Pechiney’s 2004 acquisition by integrating corporate social responsibility followed its previous purchases of Promens the Canadian company, its transition to and launching more major lines in big and M&H Plastiques; MWV’s merger with new shareholder Sun Capital Partners in quantities in a short timeframe.” He adds: RockTenn and the sale of its European 2010 and transformation to become Albéa, “Critical mass means consolidation. We’ve beauty and personal-care folding carton and the subsequent acquisitions of Betts seen it throughout the history of Albéa. operation to AGI Shorewood Group; Geka’s Group, Eyelematic, Tex China and fnally We were a federation of small-to-medium acquisition of struggling compatriot Oeka; Rexam, in 2013. sized companies and consolidation has Ileos’ decision to sell its carton printing been extremely important in allowing us to business to Mayr-Melnhof Packaging, and Clients feel the squeeze become a leader and invest permanently in the merger between Bioplan and Arcade Luscan cites the diffcult market both machinery and men.” Marketing to form Arcade Beauty. “Like environment for beauty players, a focus But others in the industry are not as our clients, who are regularly acquiring on fewer, but more important launches, convinced. Certain players, and not just 122 November-December 2015 - N°24 - BW Confidential