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IGGESUND, STORA ENSO AND BILLERUDKORSNÄS: OWNERS OF THE MOST VALUABLE BRANDS OF CARTONBOARD IN WESTERN EUROPE

Posted on September 5, 2018 by Opticom

Since the first survey conducted in 2004, Opticom’s brand tracking
survey has been the industry standard benchmark by which all virgin
fibre cartonboard brands are evaluated.


For the 8th time, Opticom has identified and ranked the most valuable
virgin fibre cartonboard brands in Europe through in-depth interviews
with 212 converters and 291 with brand owners across 8
countries: Germany, France, the United Kingdom, Italy, Spain, the
Netherlands, Belgium and Switzerland.

Main findings

  • Both Iggesund and Stora Enso continue to maintain their positions as owners of the most

valuable brands since 2012. However, BillerudKorsnäs is challenging the top brands by

taking the 6th place among converters and the 3rd among brand owners.

  • The survey shows that there is a clear correlation between the brands purchased and the

ones mentioned spontaneously among converters. This is less true among brand owners

except for BillerudKorsnäs. The brand the most well-known among converters is

Invercote and among brand owners Tambrite.

  • Product quality drives the selection of which brands to use for the consumer packaging

and most specifically the consistent quality is the most important criterion for both

converters and brand owners. Metsäboard Pro is the best brand at fulfilling converters'

expectations and conversely Ensocoat for brand owners.

  • Both converters and brand owners are very loyal to their brands used. Incada scores the

highest on the loyalty aspects among converters and Tambrite among brand owners.

 

AMAZON VS FOREST INDUSTRY 1-0 (FIRST HALF)

Posted on February 22, 2018 by Opticom

On February 21st, 2000 I was moderating a panel discussion in Stockholm and the theme was: The IT society, a threat against printing paper?
Starting up the panel discussion, I reminded the audience that there was an Internet company traded on NASDAQ called Amazon that had 3,000 employees, negative profits, and a market cap of 8 Billion US dollars. This was equivalent to the market cap of SCA, Stora, Enso, UPM and Holmen – COMBINED. Most people in the audience laughed and exclaimed that the world had gone crazy. Not so many are laughing today. Since then Amazon’s stock price has soared by over 2100% and the market cap is now 700 billion US dollars. What about the named forest industry stocks? Well, they have risen too and are today valued at 60 billion US dollars. With Amazon´s market cap outperforming the selected basket of forest industry stocks 12 fold, we can conclude that at half-time it’s 1-0 to Amazon.
However, the game isn’t over until the referee blows the whistle. What will happen in the next 18 years? Today the forest industry is in much better shape than in 2000. Their business models are supported by mega trends such as increasing e-commerce, aging population, growing middle class, a world going non-plastic, etc. The industry is optimistic about the future, with many new ideas and innovations in the making. In the second half of the game my bet would be to go long in forestry and short in Amazon.
We see these trends, with all the new opportunities they offer for the forestry industry. And we’ll take an active role in this process of change. Because we help create value for companies around the world by transforming data and knowledge into strategic advice and efficient communication.

 

IS THE PULP MARKET BECOMING NON-CYCLIC? HERE ARE 10 ARGUMENTS.

Posted on January 10, 2018 by Opticom

“You can’t see the forest for all the trees”.

In Sweden, with some 80 percent of the land covered by forests, that is a pretty obvious remark. But it is also a Swedish proverb, meaning that it’s hard to see what’s under your nose.


Maybe that is also the case when it comes to the nature of the forestry industry, especially the pulp industry. Things are changing, fast. And few see it. From being the archetypical cyclic industry, ridden by regular financial tidal waves, the forest industry is showing signs of increased stability over time.


Let’s list the indicators, one by one, but without any internal order:

  1. Forest land gets a higher evaluation than ever by analysts and is seen as a safe investment.

  2. Printing paper represent a much smaller share of the business now, and hence a much lower implication on the bottom line.

  3. The population in the industrialized world is getting significantly older, which implicates an increased use of tissue products, not least for incontinence care.

  4. Globally, a larger proportion of the population is rising from poverty, and therefore is likely to consume more paper based products.

  5. The growth in the global economy shows surprising stamina, which in turn drives the demand on packaging.

  6. Consumers are becoming more environmentally concerned, and show a growing resentment against plastics and pro paper based packaging.

  7. The shift from a fossil-based to a bio-based society is growing and becoming common practise.

  8. There is a growing lack of recycled fibre in the recycling system, which drives a need to invest in the production of fresh fibre.

  9. The forestry industry, which may have been seen as conservative, is becoming more and more innovative, focusing increasingly on R&D.

  10. After years of development, large scale wooden based buildings (residential as well as commercial) are getting a broader acceptance.


We see these trends, with all the new opportunities they offer for the forestry industry. And we’ll take an active role in this process of change. Because we help create value for companies around the world by transforming data and knowledge into strategic advice and efficient communication.