Earlier this year, Mondi completed its acquisition of Schumacher Packaging’s assets in Western Europe. In this edition of our ‘In Conversation With…’ series, we touch base with Markus Gärtner, CEO Corrugated Packaging at Mondi, to learn more about the implications for the companies, customers, and industry as a whole, and what we can expect to see going forward.
For our readers who might be unfamiliar, walk us through Mondi’s acquisition of Schumacher Packaging. What benefits or services will customers receive from this expansion?
At the beginning of April, twelve Schumacher Packaging sites across Germany, the UK and the Netherlands joined Mondi Group. These sites produce corrugated solutions and solid board which is an ideal strategic fit for our business and increases our corrugated converting capacity by over one billion square metres. It has been a real pleasure getting to know our new colleagues – we have a great cultural fit and the integration is already going very well.
The acquisition expands Mondi’s corrugated footprint in Western Europe providing customers with an even broader portfolio of packaging solutions and superior service. The high-capacity plants of Mondi Ebersdorf and Mondi Greven are part of this expanded network, and we are seeing first-hand how the ‘best of both worlds’ expertise from Mondi and Schumacher is adding real customer value.
In this dynamic world, we all know the importance of a reliable service. At Mondi, our integrated value chain – from in-house containerboard production to advanced converting capabilities and packaging design – allows us to offer consistent product quality, innovative packaging solutions and a responsive service. This end-to-end expertise ensures that we can support our customers with tailored, efficient and sustainable packaging, every step of the way.
How does this acquisition fit with the broader consumer and customer trends in our industry?
Our latest Mondi Group eCommerce trend report finds that 8/10 consumers across Europe demand sustainable or recyclable packaging and 4/10 consumers will avoid shopping with retailers where there is packaging waste.
Our strategy is fully aligned with such long-term trends as we are growing our portfolio of sustainable packaging solutions. Our customers want to solve many of the world’s most demanding challenges, such as building circular solutions, tackling food waste and increasing material efficiency.
Another trend we see is that customers are looking for suppliers with a broad portfolio and multi-material expertise – because they want to improve the sustainability of their packaging without compromising on product protection. This includes a diverse range of corrugated and solid board grades as well as flexible packaging, with tailored solutions meeting both environmental and performance needs.
For a long time, eCommerce was synonymous with shipping paperboard boxes – today, a broad spectrum of innovative, sustainable solutions is available, from standard shipping formats such as our recyclable MailerBAGs, solid board envelopes, kraft paper, containerboard and corrugated solutions to premium designs. Also, digital printing is becoming more and more important as it can increase operational efficiency. With in-house digital, offset and flexo printing, we now cover a wide spectrum of needs.
Following on from that, how would you say the acquisition helps customers improve their sustainability?
The acquisition strengthens the scale of recyclable, fibre-based solutions we can offer eCommerce and FMCG companies where sustainable fit-for-purpose packaging is a priority.
As you may know, Mondi is an industry leader with our MAP2030 sustainability framework, and our efforts are recognised by leading independent sustainability benchmarks.
Our product innovation teams enjoy the daily challenge of helping our customers reduce their environmental impact through smart packaging design and recyclable materials. If you have a challenge you want to share – such as how to replace expanded polystyrene (EPS) with a more sustainable solution – we’d love to hear from you!
What outcomes do you expect to see as you expand into the Western European market?
Western Europe is a very developed market with high standards and high expectations, especially when it comes to sustainability, service and product performance. Germany is Europe’s largest packaging market and expanding our presence here brings us closer to customers and allows us to offer a fast and reliable service.
With this acquisition we are now among the top corrugated packaging manufacturers in Europe and our aim is to continue building long-term relationships with our customers. We want to be more than just a supplier – we aim to be a strategic partner with both international scale and local insight.
What differences do you see among generations in terms of packaging trends?
Our annual survey of 6,000 online shoppers across Europe gives us many insights that drive our innovation. For example, our latest results found that 71% of Generation Z consumers say that unboxing heavily influences their purchasing decision, compared to half for the Boomer generation. In fact, 59% of all consumers say a poor unboxing experience would put them off buying again.
This is one example of where our industry needs to keep evolving and our product innovators are working on designing solutions that are not just for safe delivery but also support a fantastic brand experience. In fact, many of our best ideas come during our customer co-creation workshops which take place at our ThinkBox innovation centres where generational needs are of course part of the design equation.
With all this in mind, what are Mondi’s next steps?
Right now, we’re focused on integrating our teams and systems, and making sure customers benefit from our expanded offering and services across Europe.
Longer term, our strategy hasn’t changed: being a leading partner for packaging solutions that meet the evolving needs of our customers – from improving sustainability and recyclability to enhancing efficiency, product protection and brand impact. We’re committed to working closely with our customers to co-create smart, fit-for-purpose packaging that supports their transition to a circular economy, while also delivering on performance, cost-effectiveness and consumer expectations.
To learn more about the acquisition, Mondi’s expanded product portfolio, and the services Mondi supplies, click here.
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