Sonoco Passes the Buck: Packaging Giant Raises Prices in Europe

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Here’s a classic story of cost-push inflation making its way through the supply chain. Sonoco Products Co. (SON) announced on Tuesday that it’s raising prices across its paperboard and packaging products in Europe, the Middle East, and Africa. The reason? The same pressures hitting everyone: energy, fuel, and materials just keep getting more expensive.

The Price Hike Details

Specifically, the company said it will increase prices for uncoated recycled paperboard by 80 euros per ton. It’s also bumping up prices for its tube and core products—those cardboard cylinders you find inside rolls of paper or fabric—by 8%. These new rates kick in for shipments starting April 15, 2026.

This isn’t a move made lightly. Sonoco pointed directly to "continued inflationary pressure" across its operations and supply chain. We’re talking about higher costs for the essentials: energy, natural gas, fuel, chemicals, and additives. When your supplier base is charging more, you eventually have to pass it on.

Passing the Buck in Europe

The increases will be handled by Sonoco S.a.r.l., the company’s wholly owned subsidiary that runs 19 tube-and-core plants and five paperboard mills across Europe.

Karsten Kemmerling, Division Vice President of Sales & Marketing for Industrial Paper Packaging in EMEA, laid it out plainly. "We continue to experience further cost increases in all sectors of our operations and supply chain," he stated. "We are forced to pass these cost increases to the market as we are unable to absorb them any further. Supply security and quality remain our primary focus, but we must keep pace with these rising costs."

Translation: We’ve eaten as much of this cost as we can. Now it’s your turn, customer.

Where the Stock Stands

Meanwhile, the market seems to be pricing in some resilience. At $54.18 at the time of the announcement, Sonoco’s stock was trading 1.8% above its 20-day simple moving average of $53.20 and 2.5% above its 50-day average of $52.87. That suggests a short-to-intermediate term bullish trend is in place.

The stock is up nearly 30% over the past 12 months and is hovering near its 52-week high of $58.44. Traders often watch key levels: $58.50 is seen as a resistance point that has capped rallies before, while $52.00 could act as a support floor if the stock pulls back.

Earnings on the Horizon

All this comes just ahead of the company’s earnings report, confirmed for April 21, 2026. The expectations tell a slightly softer story than the stock’s momentum might suggest.

EPS Estimate: $1.20 (down from $1.38 a year ago)
Revenue Estimate: $1.70 billion (down slightly from $1.71 billion)
Valuation: The stock trades at a P/E of 9.1x, which some might see as a value opportunity.

Analysts, however, are generally on board. The consensus rating is a Buy with an average price target of $62.50. Recent moves include Deutsche Bank initiating coverage with a Buy and a $63 target on April 1, Wells Fargo maintaining an Equal-Weight rating but lowering its target to $56 on March 20, and Truist Securities raising its Buy target to $69 back in February.

The ETF Angle

Here’s a mechanical factor that could move the stock regardless of news: Sonoco is a meaningful holding in several exchange-traded funds. Because of this, big flows into or out of these ETFs can force automatic buying or selling of SON shares.