Pack Expo 2024: Smurfit Westrock’s North America corrugated packaging president talks US development
At Pack Expo 2024 in Chicago (November 3–6), we sat down with Don Sparaco, president of Smurfit Westrock’s corrugated packaging division for North America. We discuss how the company’s history is changing amid its recent merger, customer demands in the US, automation and new product innovations that are meeting current market challenges.
Sparaco joined Smurfit Westrock in 2009 in the manufacturing services arena, first as vice president of manufacturing services. He spent six years in that role integrating what at the time was Smurfit Stone (in 2011) and then became a leader for eastern and central regions.
What are the biggest changes you’ve seen since you started for the corrugated sector?
Sparaco: The core principles and customer focus remain the same. Every company changes a little bit as it grows in size, and we’ve grown through acquisitions over the years. Each acquisition brings its own culture and its own area of expertise, and so with each increase, the company has changed a little bit.
Smurfit Westrock’s WetTech technology on display at the show.I think we’ve been able to capture the strengths of each and every company that’s joined Smurfit Westrock over the years and play to those strengths. This has made us a bigger and better company — more customer-focused with more offerings and ways to help our customers improve their sales, lower their costs and be more sustainable, which is part of our value proposition.
There are a large number of companies. Some were small bolt-on acquisitions, and some were larger transformational deals, but there have been quite a few.
How has the corrugated market changed amid the demand for a reduction in single-use plastics?
Sparaco: Over the years, society, in general, has become more focused on sustainability and protecting the environment. Corrugated has been in the right place at the right time and has the right type of product line. Over the years, our customers have increasingly sought more sustainable packaging.
Their end users are demanding more and we’ve been able to help offer solutions and that trend, that macro trend continues to accelerate and we don’t see it changing anytime soon but that’s been a huge change over the years.
What can we expect to see in the next five years from Smurfit Westrock in the corrugated sector?
Sparaco: I think both companies are coming together, so we’re still learning about each other and what we have to offer. Initially, our customers reacted positively to the merger and combination.
They see a company that operates in 40 countries, so it’s truly global. As they’re trying to increase their brand recognition globally, they want a partner who can help out everywhere. We have many similar philosophies and strengths, one being the focus on sustainability. I think that we’ll be a sustainable packaging company for years to come, and that will be one of our focuses.
Also for innovation, both Smurfit Kappa and Westrock are bringing strong innovation platforms together to help us present some really fantastic things that will help meet our customers’ needs.
What are the product highlights you’re showcasing at Pack Expo 2024?
E-commerce mailers were highlighted among the company’s recyclable solutions.
Sparaco: We have machinery offerings which help our customers reduce their labor costs so they can further automate their packaging lines. We have a wet tech product out here that helps eliminate wax that is not recyclable or re-compostable — this is a recyclable product offering that has already been embraced by a number of different produce customers and is looked at, and we’re using it for protein customers (meat companies).
It’s a coated product that replaces the need for single-use plastics. There’s a lot of chemistry behind it, but it seals the paper surface of the coated product and allows wet or damp products to be packaged without deteriorating the packaging or permeating the paper substructure. It also allows for easy release.
So if it gets frozen or something of that nature, it’s easy to release without any kind of stickiness.
We are also demonstrating how our experts can guide customers from their initial primary packaging, whether it be bottles or bags, and we can show them how that primary packaging interacts with the secondary or tertiary packaging, whether that be folding cartons or corrugated containers.
We have databases that allow customers to see how packaging will travel, whether on paved roads or non-paved roads, to different parts of the country and how it will react in warehouses.
We also have some of our design expertise, which shows what we can do from a print capability standpoint. So we do everything from digital print to offset printing to flexographic printing, and we have the capabilities to span all of those different things and meet customers’ needs. Even personalized digital printing so we can print last Sunday’s football score on the packaging or somebody’s name if it needs to be a personalized gift or something of that nature.
What have you found from speaking to customers at the show this year?
Sparaco: Customers are impressed by all of the things that we can bring to the table to help them meet their needs. There’s a lot of pressure on customers as they come through the inflationary COVID-19 time period and as their consumers demand more sustainable solutions, as well as their boards of directors for public companies.
Corrugated products have been well situated to replace single-use plastics amid shifting environmental demands, Sparaco notes.They turn to us for our expertise, and we take pride in helping them meet their needs and design a solution — not only a packaging solution but a strategy for the future.
What differences exist between US customers and those in other regions like Europe?
Sparaco: Customers all want the same things, but they may have slightly different circumstances in which they operate. Every country has its own regulatory environment.
And every country has its own supply chain characteristics. In some countries, for example, they may do less warehousing or they may not travel as long a distance. Those are the main things that differ generally.
Every customer wants to sell more of their product and reach their target audience. Most of them want sustainable packaging and lower costs. They also want to minimize risk, and bringing in a partner like Smurfit-Westrock with experience in all these different areas gives them some peace of mind as they continue to grow.
What is your main ambition for leading the corrugated business forward?
Sparaco: Our main ambition is always to meet our stakeholders’ expectations, goals and needs. We’ve set our own lofty goals, and we always have — we’ve always been a company that’s wanted to be on the leading edge in whatever we do and be the best at whatever we do.
I think that’s going to continue. We want to be known as the company that innovates, is customer-focused, provides sustainable solutions and is a great partner in the communities in which we operate. That will continue to be our main objective, meeting our shareholders’ needs and delivering on what we commit to.