Kruger Products Inc. Company Profile
Background
Kruger Products Inc. is Canada's leading manufacturer of quality tissue products for household, industrial, and commercial use. With a mission to make everyday life more comfortable and a vision to be the most trusted, best-loved tissue company in North America, Kruger Products has built a reputation for excellence through its high-quality products and effective marketing campaigns. The company's portfolio includes well-known brands such as Cashmere®, Purex®, Scotties®, SpongeTowels®, and White Cloud®. Headquartered in Mississauga, Ontario, Kruger Products operates multiple manufacturing facilities across Canada and the United States, employing approximately 2,700 people.
Key Strategic Focus
Kruger Products focuses on delivering high-quality tissue products to both consumer and commercial markets. The company specializes in manufacturing bathroom tissue, facial tissue, paper towels, and napkins under its various brands. Utilizing advanced technologies such as Through-Air Dried (TAD) paper machines, Kruger Products aims to enhance product quality and operational efficiency. The primary markets targeted include household consumers and the Away-From-Home (AFH) segment, which serves commercial establishments like office buildings, healthcare facilities, food service providers, and lodging.
Financials and Funding
In 2022, Kruger Products reported revenues of approximately $1.7 billion, marking an increase from below $1.5 billion in 2021. This growth was driven by price increases in both the Consumer and AFH segments, as well as volume growth in the Consumer segment. However, EBITDA declined to $116 million in 2022 from $153 million in 2021, primarily due to increased pulp and commodity prices, higher labor and manufacturing costs, and operational inefficiencies at the Memphis manufacturing facility. The company's debt-to-EBITDA ratio deteriorated to 10.8x in 2022 from 7.3x in 2021. Looking ahead, Kruger Products projects revenue growth to approximately $1.85 billion in 2023, with EBITDA expected to grow toward $200 million, driven by price increases, volume growth, and efficiency-improving initiatives.
Pipeline Development
Kruger Products has been investing in expanding its production capacity and enhancing product quality. In 2021, the company commissioned a new TAD paper machine at its Sherbrooke, Quebec plant, adding 70,000 metric tonnes of capacity. This investment aims to support the production of premium bathroom tissue and paper towel products. Additionally, the company announced a $111.5 million investment to double its tissue paper capacity at the Sherbrooke plant, further strengthening its market position.
Technological Platform and Innovation
Kruger Products differentiates itself through the adoption of advanced manufacturing technologies and a strong commitment to sustainability. The company utilizes TAD technology to produce high-quality tissue products with superior softness and absorbency. In 2022, Kruger Products launched Bonterra™, a sustainably focused tissue brand made from 100% recycled paper with Forest Stewardship Council® (FSC®) certification, plastic-free packaging, and carbon-neutral manufacturing. The company's sustainability initiative, Reimagine 2030, sets ambitious goals in areas such as fiber sourcing, plastic packaging reduction, climate change mitigation, and water conservation.
Leadership Team
- Dino Bianco: Chief Executive Officer
- François Paroyan: Senior Vice President, General Counsel & Corporate Affairs
- Tom Olsen: Vice President of North American Sales
- Eric Bisson: Corporate Vice President of the Away From Home Division
These leaders have been instrumental in driving the company's strategic initiatives, operational efficiencies, and market expansion efforts.
Leadership Changes
As of the latest available information, there have been no recent significant changes or appointments within Kruger Products' leadership team.
Competitor Profile
Market Insights and Dynamics
The tissue products industry in North America is characterized by steady demand driven by consumer necessities and commercial usage. The market is competitive, with several key players vying for market share through product innovation, sustainability initiatives, and strategic partnerships.
Competitor Analysis
Kruger Products faces competition from major companies such as Kimberly-Clark, Procter & Gamble, and Cascades. These competitors focus on similar product categories, including bathroom tissue, facial tissue, and paper towels. Notable achievements among competitors include extensive brand portfolios, global distribution networks, and significant investments in sustainable practices.
Strategic Collaborations and Partnerships
Kruger Products has engaged in significant collaborations to strengthen its market position and innovation capacity. The company has partnered with organizations like Earth Day® Canada to facilitate efforts in reducing environmental impact and promoting sustainability among employees, communities, customers, and consumers. Additionally, Kruger Products supports various causes, including the Breast Cancer Foundation, the Canadian Women’s National Curling Championship (Scotties Tournament of Hearts), Crohn’s & Colitis Canada, and Ronald McDonald House Charities Canada, reflecting its commitment to community engagement.
Operational Insights
In early 2023, Kruger Products announced the shutdown of certain older and inefficient production assets at its Memphis, Tennessee plant, including a Light Dry Crepe paper machine and six converting lines. This decision aims to improve operating efficiencies and profitability. The Memphis plant will continue to produce high-quality facial tissue and premium TAD products with approximately 400 remaining employees.
Strategic Opportunities and Future Directions
Kruger Products is focused on expanding its production capacity, enhancing product quality, and strengthening its sustainability initiatives. The company's investments in new technologies and facilities, such as the TAD paper machine at the Sherbrooke plant, position it to meet growing consumer demand for premium and
