Corrugated Box Increase June 1st 2013.

APRIL 29, 2013


Victory Packaging - Box Increase.

On Friday, April 19, Pulp and Paper published a $50 per ton increase in the price of linerboard and medium, the major raw material for boxes. This increase was announced at the beginning of March and pushed through relatively quickly.

As a result of the increase in published prices, Victory will be raising prices by 9% on June 1st.

We hate increasing prices to our customers. Our job and commitment to you is to reduce your total cost of packaging. That job is much harder when consecutive increases are hitting the market. The timing of this price increase is frustrating as it is on the heels of an increase last fall. Industry consolidation has given significant pricing leverage to the manufacturers of paper.

In addition, inventory levels are at historic lows and operating rates remain high. Thus, while demand is only up slightly, supply limitations are driving this increase.

Your salesperson will be in touch with you very soon to discuss your specific account, market dynamics, and provide you with an updated price list.

As always, thank you for your business.

Robert Egan

Victory Packaging