Thanks for sharing your insights. I agree that the growth potential is a key concern, especially with the heavy reliance on Oral Care, which is indeed a mature segment with limited growth opportunities. The focus on smaller customers in the Personal Care and Beyond segments might help in diversifying the revenue stream, but it also suggests a strategic shift to compete on price and volume rather than on premium offerings. This could be a long-term play to build market share, but it may also slow down overall growth unless they can capture significant market share quickly or scale up operations efficiently.
Regarding pricing power, the company’s decision to maintain similar pricing despite the shift to recyclable packaging is intriguing. It does raise the question of whether they view this as a commodity business, where they must compete primarily on price rather than on differentiated value. However, their investments in sustainability and advanced recyclability could be a strategic move to position themselves as a leader in this space, potentially opening up future opportunities as sustainability becomes a non-negotiable for many clients.
It seems like they’re playing the long game, focusing on building relationships and volume rather than immediate margin expansion. This could be a defensive strategy to protect market share in a highly competitive environment. I’m curious to see if this approach pays off in the long run or if they eventually pivot to a more aggressive pricing strategy as the demand for sustainable solutions grows.
What are your thoughts on the potential for this long-term strategy to drive growth and profitability?
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