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smaller brands, are concerned that faced conglomerate.” Quadpack hopes to fnalize to do so, in others, not yet.” He adds that with increasingly large suppliers, they do at least one such project in the coming Albéa is also on the lookout for acquisition not receive the same level of attention months, he says. targets. “There are opportunities, because as the multinational heavyweights. “A in periods as diffcult [for the market] lot of clients feel that the big companies Big, but fexible? as this, companies have cashfow are fnancially motivated and they have Albéa’s Luscan, meanwhile, argues problems.” Albéa acquired two frms less bargaining power against these big that his company has the industrial suffering such troubles last year, he says, companies. My experience is that the fexibility necessary to cater to all beauty to assure the supply chain of certain customer base is getting increasingly technologies, but has no obligation to bigger suppliers bring fewer products to “ severe fnancial diffculty, and there can nervous about the power of the suppliers,” disclose such acquisitions. says Quadpack ceo Tim Eaves. “There are competitors out there in Additional complaints include that the You need to be fnancially interests our clients. There are emerging market. “The bigger companies innovate solid and you need be opportunities to consolidate if that on a larger scale, but are slower to critical mass to be able to markets where we are interested in innovate,” says Eaves. “Putting it in constantly innovate, while making acquisitions to allow us to work numerical terms, a big company is not faster, and there can be technologies we going to invest in an innovation that sells at the same time reducing wish to acquire to help our customers’ 100,000 or 200,000 [units] a year, they’re costs, integrating corporate development,” says Luscan. looking to innovate in products that will social responsibility and Despite believing that the industry will, sell millions per year, which means they in the long term, undergo consolidation can’t launch or develop as many concepts launching more major lines similar to that seen in the automobile as a smaller company.” in big quantities in a short sector, Luscan admits that there will also Today, larger suppliers also have a timeframe. Critical mass always be room—albeit it little—for small, lot more pressure to show a return on players. “There will always be innovative investment. This is especially the case as means consolidation small and medium-sized companies on many of the packaging giants are now the market, and they will remain the backed by private-equity funds that look challengers, who will constantly make us to monetize their investment within a ” question ourselves.” short timeframe. Albéa president and ceo But there is no doubt that smaller François Luscan Nevertheless, Eaves predicts that packaging suppliers have a battle on their consolidation among small and mid-sized hands to stay afoat, and perhaps only the companies will continue. “I expect that manufacturers, regardless of their size. most innovative and fexible will survive— there will be more consolidation and it’s “We can dedicate production to all types or indeed face a diffcult choice between something that we’re starting to do. We of customer; we want to appeal to them surviving alone or being taken over by one are looking at more acquisitions, ventures all,” he says. “Our advantage is in being of the larger players. mergers and things like that. For example, large enough to offer them a one-stop Nevertheless, small packaging players we can group together small companies shop through which we can look after still have a role to play in coming up with that don’t have the access to the market every aspect for them. Our objective is to innovation and newness, which will no that the big players have, and join forces have a business adapted to each customer. doubt become more important in ensuring without becoming a huge, faceless In certain domains, we are already able their longevity. n November-December 2015 - N°24 - BW Confidential 123