Menasha Packaging expands Folding Carton Group plant
NEENAH, Wis. — Menasha Packaging has expanded its Folding Carton Group facility in Neenah, Wis., which will mean greater efficiency and faster production, the company has announced.
The expansion added 26,500 square feet to the initial 109,000-square-foot facility, plus 59,000 square feet in warehouse space that includes a new shipping area and receiving area.
The additional space helped management maximize the plant’s layout and flow and further enhance efficiencies. Furthermore, the expansion allowed for the consolidation of equipment from Menasha Packaging’s Morrisville, N.C. folding carton facility, the company stated.
Folding Carton Group employees rearranged most of the plant’s existing machines – including a sheeter, trimmer, three die-cutters and three folder gluers – to make room for equipment relocated from Morrisville, which includes a printing press, die-cutter, folder gluer and other auxiliary equipment. They also enhanced plant equipment in order to increase productivity.
“During the expansion and improvement process, the Folding Carton Group team rebuilt and modified a printing press, which enhanced its efficiency and run speed by 20%,” Jim Synder, Menasha Packaging Folding Carton Group GM, said. “Additional equipment in the plant was also improved during this time, which will allow us to continue exceeding the expectations for our folding carton customers.”
In addition to Folding Carton Group’s improved operational efficiencies, the facility is in the process of adding employees, allowing it to operate a few more pieces of equipment 24 hours a day, seven days a week and add additional output.
Menasha Packaging’s Folding Carton Group serves various markets, including food, household and personal care.
McKesson, Celesio deal brings the number of generic titans to three
If you don’t succeed the first time, try, try again. That’s exactly what McKesson did when it announced that it reached an agreement with Franz Haniel & Cie. GmbH to acquire its entire holding of Celesio shares. And in a separate and subsequent agreement, McKesson also picked up the Celesio convertible bonds from Elliott.
Nothing good is ever easy. "While the path to securing this acquisition was certainly not what we had originally expected, it would seem that the interested parties to this transaction continued to see the compelling strategic benefit of McKesson and Celesio uniting to form a global leader in health care services," John Hammergren, McKesson chairman, CEO and president, said of the deal. "I never lost sight of the value this transaction will bring to our customers, our supply chain partners, the employees of both organizations and our shareholders."
The deal catapults McKesson’s generic sourcing ability to the levels recently achieved by the CVS Caremark and Cardinal Health joint venture, and before that the Walgreens/Alliance Boots/AmerisourceBergen strategic partnerships.
Buying big in generics continues to be a big deal as these three juggernauts now have similar purchasing prowess. The McKesson-Celesio deal is expected to generate a combined generic purchasing power of between $9.5 billion and $11.5 billion, according to an analysis by FBR Capital Markets. A similar analysis of the respective purchasing power of CVS Caremark and Cardinal Health means their deal will create a combined purchasing power of between $9.5 billion and $11.5 billion. According to FBR, the Walgreens-Amerisource-Bergen-ABC Consortium has about $12 billion in combined generic purchasing power.
But buying big won’t necessarily benefit everyone. According to a recent DSN analysis of the three deals (you can check it out in the February issue of DSN), margin compression might be one consequence of three generic sourcing powerhouses. "The better these wholesalers are able to buy, the more they will drive the average manufacturer price down. This makes it harder for independent pharmacy members to compete with the Big Three, and could have perverse market effects."
Study: Holiday gift card sales increase
PORTLAND, Ore. — Fifty-seven percent of consumers purchased digital gift cards in December 2013, and 43% purchased physical cards. Data from prepaid product and transaction services company InComm also shows that 80% of consumers purchased digital cards in the six days leading up to Christmas, and 20% of consumers purchased physical cards in the six days leading up to Christmas.
Sales of physical cards peaked on Dec. 17, with sales decreasing every day after that, while sales of digital cards began a marked upward trend beginning on Dec. 17, with sales increasing after that and peaking on Dec. 24.
In addition, Shopkick leverages the InComm Digital Solutions platform to instantly connect Shopkick users with their digital gift card of choice to be scanned at the retailer’s point of sale. During Black Friday alone, Shopkick employed the InComm platform to deliver nearly seven times its usual daily volume of digital gift cards.
"We’re thrilled to be Shopkick’s partner and to have helped them successfully address such high demands on Black Friday," said Mike Fletcher, senior VP of sales and marketing for InComm Digital Solutions. "In a recent consumer survey conducted by InComm, nearly 70% of consumers stated they are more interested in purchasing digital gift cards now than they were two to three years ago. Further, our own internal holiday data reveals the increased sales opportunities created by offering digital in addition to physical cards. These numbers demonstrate how brands benefit when they open up gift card sales through all channels."