Amcor plc (AMCR): Business Model Canvas [10-2024 Updated]

Discover how Amcor plc (AMCR) has shaped its business model to thrive in the competitive packaging industry. From strategic partnerships to innovative product offerings, Amcor's approach underscores its commitment to sustainability and customer-centric solutions. Dive into the details of their Business Model Canvas to see how they create value across various sectors, including food, pharmaceuticals, and personal care. Explore the key elements that drive their success and keep them at the forefront of packaging innovation.

Amcor plc (AMCR) - Business Model: Key Partnerships

Collaborations with Raw Material Suppliers

Amcor plc maintains strategic relationships with various raw material suppliers to ensure a consistent supply of essential materials. As of September 30, 2024, the company reported that it had outstanding amounts due to suppliers participating in supply chain finance (SCF) programs totaling approximately $0.9 billion.

Raw Material	Volume (Tons/Pounds)	Cost (USD)
Aluminum	19,797	Market-dependent
PET Resin	17,800,000	Market-dependent

Strategic Alliances with Technology Providers

Amcor collaborates with technology providers to enhance its manufacturing processes and product offerings. These alliances focus on innovations in packaging technology and automation. The company is investing between $110 million to $130 million in various cost-saving initiatives post divestment from its Russian operations.

Partnerships with Sustainability-Focused Organizations

Amcor is committed to sustainability and has engaged with multiple organizations to drive eco-friendly practices in packaging. The company aims for all its packaging to be recyclable or reusable by 2025. As part of this commitment, Amcor has incorporated recycled content into packaging, with a goal of increasing the proportion of recycled materials used.

Engagements with Logistics and Distribution Partners

Logistics and distribution partnerships are crucial for Amcor's supply chain efficiency. The company has engaged with various logistics providers to streamline operations across its 212 locations in 40 countries, enabling it to maintain its competitive edge. As of September 30, 2024, Amcor reported net sales of $3.353 billion for the quarter, supported by effective distribution strategies.

Logistics Partner	Service Type	Regions Covered
Partner A	Transport and Freight	North America
Partner B	Warehousing	Europe
Partner C	Distribution Network	Asia Pacific

Amcor plc (AMCR) - Business Model: Key Activities

Manufacturing flexible and rigid packaging

Amcor plc operates as a global leader in packaging solutions, focusing on both flexible and rigid packaging across various sectors including food, beverage, pharmaceutical, and personal care. In fiscal year 2024, Amcor generated approximately $13.6 billion in net sales from its operations, which span 212 locations in 40 countries.

The Flexibles segment reported net sales of $2.552 billion for the three months ended September 30, 2024, with an adjusted EBIT of $329 million, reflecting a 12.9% adjusted EBIT margin. The Rigid Packaging segment had net sales of $801 million during the same period, with an adjusted EBIT margin of 7.7%.

Research and development for innovative solutions

Amcor invests significantly in research and development to enhance its product offerings and innovate packaging solutions. The company reported $28 million in research and development expenses for the three months ended September 30, 2024, which is consistent with its commitment to developing sustainable and technologically advanced packaging.

In 2024, Amcor's R&D focus has been on creating packaging that is recyclable and made from recycled materials, aligning with global sustainability trends. This includes the development of lighter-weight packaging that reduces material usage and carbon footprint.

Quality assurance and regulatory compliance

Quality assurance is a critical component of Amcor's manufacturing process. The company adheres to stringent regulatory compliance measures across all its operations to ensure product safety and quality. As of September 30, 2024, Amcor has successfully maintained compliance with various international safety standards, which is pivotal in retaining customer trust and market reputation.

The gross profit margin increased to 19.7% for the three months ended September 30, 2024, up from 18.7% in the previous year, indicating improved operational efficiency and effective quality control measures.

Marketing and brand management

Amcor's marketing strategy emphasizes building strong relationships with leading global brands across multiple sectors. The company's marketing efforts focus on differentiating its products through innovation and sustainability. For the three months ended September 30, 2024, selling, general, and administrative expenses, which include marketing costs, were reported at $315 million, reflecting a 4% increase from the previous year.

Amcor continues to enhance its brand management initiatives by engaging in various marketing campaigns aimed at promoting its sustainable packaging solutions, which resonate with environmentally conscious consumers.

Key Activity	Details	Financial Impact
Manufacturing Packaging	Flexible and rigid packaging across multiple sectors	Net sales: $13.6 billion (FY 2024)
Research and Development	Focus on sustainable packaging solutions	R&D Expenses: $28 million (Q3 2024)
Quality Assurance	Adherence to international safety standards	Gross Profit Margin: 19.7% (Q3 2024)
Marketing and Brand Management	Strengthening relationships with global brands	SG&A Expenses: $315 million (Q3 2024)

Amcor plc (AMCR) - Business Model: Key Resources

Advanced manufacturing facilities across 40 countries

Amcor operates a robust network of manufacturing facilities, totaling 212 locations across 40 countries. This extensive footprint enables the company to efficiently meet the diverse packaging needs of its global customer base, producing a range of flexible and rigid packaging solutions.

Skilled workforce of approximately 41,000 employees

As of fiscal year 2024, Amcor employs around 41,000 skilled workers. This workforce is integral to maintaining high production standards and driving innovation within the company's various operational segments.

Strong intellectual property portfolio

Amcor boasts a significant intellectual property portfolio, with over 1,900 patents granted worldwide. This portfolio underpins the company's competitive advantage, enabling it to deliver innovative packaging solutions while protecting its proprietary technologies.

Robust supply chain network

Amcor's supply chain network is designed to be resilient and efficient, facilitating the procurement of raw materials and the distribution of finished products globally. The company strategically manages its supply chain to mitigate risks associated with commodity price volatility and geopolitical tensions, ensuring a consistent supply of high-quality materials.

Resource Type	Description	Quantitative Data
Manufacturing Facilities	Global locations for production	212
Workforce	Total number of employees	41,000
Patents	Granted patents worldwide	1,900+
Net Sales	Annual sales from operations	$13.6 billion
Debt	Total net debt	$6.9 billion

Amcor plc (AMCR) - Business Model: Value Propositions

High-quality, sustainable packaging solutions

Amcor plc is recognized for its commitment to providing high-quality packaging solutions that cater to diverse industries including food, beverage, pharmaceutical, and personal care. In fiscal year 2024, Amcor generated approximately $13.6 billion in net sales. The company operates across 212 locations in 40 countries, emphasizing its global reach and ability to deliver premium products that meet stringent quality standards.

Customizable products tailored to client needs

Amcor offers customizable packaging products that are designed to meet the specific requirements of its clients. This flexibility allows them to serve a wide range of customer needs, enhancing client satisfaction and loyalty. The company reported net sales of $2.552 billion from its Flexibles segment during the three months ended September 30, 2024, demonstrating its strong market position in customizable solutions.

Innovations in recyclable and reusable materials

Amcor has made significant strides in innovating recyclable and reusable materials. In fiscal year 2024, the company focused on making packaging that is increasingly recyclable, reusable, lighter weight, and incorporates a higher percentage of recycled content. This innovation aligns with global sustainability trends and consumer demands for environmentally friendly packaging options.

Material Type	Recyclable Rate (%)	Recycled Content (%)
Flexible Packaging	30	20
Rigid Packaging	50	30
Specialty Cartons	70	40

Strong commitment to environmental sustainability

Amcor's commitment to environmental sustainability is evident in its strategic initiatives aimed at reducing its carbon footprint and promoting sustainable practices across its operations. The company has set a target to achieve 100% of its packaging to be recyclable or reusable by 2025. This commitment not only addresses environmental concerns but also positions Amcor favorably in the eyes of consumers and investors alike.

Amcor plc (AMCR) - Business Model: Customer Relationships

Direct engagement through account management teams

Amcor plc maintains a robust direct engagement strategy through dedicated account management teams. These teams are responsible for nurturing relationships with key customers across various sectors, including food, beverage, pharmaceutical, and personal care. The company focuses on understanding customer needs and providing tailored solutions. As of September 30, 2024, Amcor generated net sales of $3.353 billion, with a significant portion attributed to direct customer interactions facilitated by these teams .

Collaborative product development with key clients

Amcor emphasizes collaborative product development, working closely with major clients to innovate and enhance product offerings. This approach not only strengthens customer loyalty but also drives sales growth. For instance, in the three months ended September 30, 2024, the Flexibles segment achieved net sales of $2.552 billion, reflecting ongoing collaboration with clients to develop sustainable and functional packaging solutions .

Customer feedback integration for continuous improvement

Customer feedback is integral to Amcor's operations. The company actively seeks input from clients to refine its products and services. This continuous improvement initiative is reflected in the adjusted earnings before interest and tax (EBIT), which for the same period reached $365 million, demonstrating the positive impact of customer-centric strategies .

Commitment to sustainability resonating with consumers

Amcor’s commitment to sustainability plays a crucial role in its customer relationships. The company has set ambitious goals to increase the recyclability of its packaging and reduce its environmental footprint. In fiscal year 2024, Amcor reported that 41,000 employees generated $13.6 billion in sales, with sustainability initiatives resonating strongly with environmentally conscious consumers . This focus on eco-friendly practices not only enhances brand image but also fosters stronger relationships with clients who prioritize sustainability in their supply chains.

Customer Engagement Aspect	Details	Impact on Sales (Q3 2024)
Direct Engagement	Dedicated account management teams	$3.353 billion
Collaborative Development	Joint product innovation with clients	$2.552 billion (Flexibles segment)
Feedback Integration	Continuous improvement initiatives	$365 million (Adjusted EBIT)
Sustainability Commitment	Increased recyclability and reduced footprint	$13.6 billion (Total sales)

Amcor plc (AMCR) - Business Model: Channels

Direct sales to large corporations

Amcor plc engages in direct sales to large corporations, focusing on industries such as food and beverage, pharmaceuticals, and personal care. For the three months ended September 30, 2024, Amcor reported net sales of $3.353 billion, with significant contributions from its Flexibles and Rigid Packaging segments. The Flexibles segment alone generated $2.552 billion in net sales.

Online platforms for smaller clients

Amcor has developed online platforms to cater to smaller clients, enhancing accessibility to its products. The company's digital initiatives aim to streamline the purchasing process and improve customer engagement. Specific revenue figures from online sales are not detailed, but the overall strategy aligns with market trends emphasizing e-commerce growth.

Partnerships with distributors and retailers

Amcor maintains partnerships with various distributors and retailers to expand its market reach. These alliances enable the company to leverage existing distribution networks, ensuring products are readily available to end consumers. In fiscal year 2024, Amcor generated $13.6 billion in annual sales from operations across 212 locations in 40 countries, highlighting the significance of these partnerships.

Participation in industry trade shows and exhibitions

Amcor actively participates in industry trade shows and exhibitions, which serve as platforms for product promotion and networking. This engagement helps Amcor showcase its innovations in packaging solutions, reinforcing its position as a leader in the packaging industry. The financial impact of these events is reflected in the overall sales performance, as participation drives brand visibility and customer acquisition.

Channel Type	Details	Recent Performance
Direct Sales	Targeting large corporations across various sectors	Net sales of $3.353 billion in Q1 2024
Online Platforms	Enhanced accessibility for smaller clients	Specific online revenue not detailed; part of overall digital strategy
Partnerships	Collaborations with distributors and retailers	Generated $13.6 billion in annual sales
Trade Shows	Participation for product promotion and networking	Contributes to brand visibility and customer acquisition

Amcor plc (AMCR) - Business Model: Customer Segments

Food and beverage industry

Amcor provides packaging solutions primarily for the food and beverage sector, which is a significant portion of its business. In the three months ended September 30, 2024, net sales from the Flexibles segment, which includes food and beverage packaging, were $2,552 million, compared to $2,568 million in the same period of 2023. The company focuses on creating innovative packaging that enhances product shelf life and consumer convenience.

Pharmaceutical and medical sectors

Amcor's offerings in the pharmaceutical and medical sectors include flexible and rigid packaging that complies with stringent regulatory standards. The company is recognized for its high-quality packaging solutions that ensure the safety and efficacy of medical products. The pharmaceutical segment remains a key growth area, driven by the increasing demand for secure and sterile packaging solutions.

Personal care and homecare products

In the personal care and homecare markets, Amcor provides packaging solutions that cater to a wide array of products, including cosmetics, hygiene products, and household cleaners. The Rigid Packaging segment reported net sales of $801 million for the three months ended September 30, 2024, down from $875 million in the previous year. This decline reflects broader market trends and shifts in consumer preferences, yet the segment remains vital for Amcor's diversified portfolio.

Industrial and agricultural applications

Amcor also serves industrial and agricultural sectors with specialized packaging solutions designed to meet the unique needs of these markets. The company's ability to provide durable and functional packaging helps in the transportation and storage of agricultural products. This segment is essential for Amcor's strategy to leverage its capabilities across various industries, ensuring a broad customer base.

Customer Segment	Net Sales (Q3 2024)	Net Sales (Q3 2023)	Growth/Decline
Food and Beverage	$2,552 million	$2,568 million	-1%
Pharmaceutical and Medical	Data Not Disclosed	Data Not Disclosed	N/A
Personal Care and Homecare	$801 million	$875 million	-8%
Industrial and Agricultural	Data Not Disclosed	Data Not Disclosed	N/A

Amcor's strategic focus on these diverse customer segments allows it to mitigate risks associated with market volatility while capitalizing on growth opportunities in various industries. The company's ongoing investments in innovative packaging solutions are expected to enhance its competitive positioning across all customer segments.

Amcor plc (AMCR) - Business Model: Cost Structure

Manufacturing and operational costs

Amcor plc's manufacturing and operational costs are primarily reflected in its cost of sales, which was $2,694 million for the three months ended September 30, 2024. This represents approximately 80.3% of net sales during the same period. The company employs around 41,000 people across 212 locations globally, contributing to its operational expenses.

Research and development expenditures

Research and development (R&D) expenses for Amcor during the three months ended September 30, 2024, totaled $28 million, consistent with the $27 million reported for the same period in 2023. This reflects the company's ongoing commitment to innovation in packaging solutions, essential for maintaining competitive advantage in the market.

Logistics and distribution expenses

While specific figures for logistics and distribution expenses are not detailed in the financial statements, these costs are generally included within the broader operational costs. The company has been focusing on optimizing its supply chain to mitigate the impacts of inflation and customer order volatility.

Marketing and sales costs

Amcor's selling, general, and administrative expenses, which include marketing and sales costs, amounted to $315 million for the three months ended September 30, 2024, compared to $302 million for the same period in 2023. This increase of $13 million or 4% was attributed primarily to the normalization of management incentive compensation.

Cost Category	Amount ($ millions)	Percentage of Net Sales (%)
Cost of Sales	2,694	80.3
Research and Development	28	0.8
Selling, General, and Administrative	315	9.4

Amcor plc (AMCR) - Business Model: Revenue Streams

Sales of flexible packaging products

In the three months ended September 30, 2024, Amcor reported net sales of $2,552 million from its flexible packaging segment, a slight decrease compared to $2,568 million in the same period in 2023. This segment has shown resilience despite market fluctuations, maintaining an adjusted EBIT of $329 million, which represents an adjusted EBIT margin of 12.9% for the period.

Revenue from rigid packaging solutions

Amcor's rigid packaging segment generated net sales of $801 million in the three months ended September 30, 2024, down from $875 million in the same quarter of the previous year. The adjusted EBIT for this segment was $62 million, maintaining an adjusted EBIT margin of 7.7%.

Custom packaging design and consultancy services

Amcor also provides custom packaging design and consultancy services, contributing to its revenue streams. The specific financial impact from these services is integrated into the overall packaging solutions offered but is not separately disclosed in the financial statements. However, the comprehensive service offering allows Amcor to capture additional value from its client relationships, enhancing customer loyalty and retention.

Long-term contracts with major clients for steady income

Amcor has established long-term contracts with significant clients, which provide a steady income stream. These contracts are critical in mitigating revenue volatility. The company’s diversified client base across various industries helps stabilize revenue even during economic downturns. For the three months ended September 30, 2024, the overall net sales for Amcor amounted to $3,353 million.

Segment	Net Sales (2024 Q3)	Net Sales (2023 Q3)	Adjusted EBIT (2024 Q3)	Adjusted EBIT Margin (2024 Q3)
Flexible Packaging	$2,552 million	$2,568 million	$329 million	12.9%
Rigid Packaging	$801 million	$875 million	$62 million	7.7%
Total	$3,353 million	$3,443 million	$365 million	10.9%

Article updated on 8 Nov 2024

Resources:

1. Amcor plc (AMCR) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Amcor plc (AMCR)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Amcor plc (AMCR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.