Sealed Air Corporation (SEE): Business Model Canvas [11-2024 Updated]

In the ever-evolving world of packaging solutions, Sealed Air Corporation (SEE) stands out with its innovative approach and commitment to sustainability. This blog post delves into the company's Business Model Canvas, exploring key elements that drive its success, such as

• strategic partnerships
• advanced manufacturing capabilities
• customizable packaging solutions

and a diverse customer base. Discover how Sealed Air creates value and maintains its competitive edge in the packaging industry.

Sealed Air Corporation (SEE) - Business Model: Key Partnerships

Strategic suppliers of raw materials

Sealed Air Corporation relies on a network of strategic suppliers to provide essential raw materials for its packaging solutions. These suppliers include major manufacturers of plastics, films, and sustainable materials. In 2024, the company reported a spending of approximately $1.2 billion on raw materials, reflecting fluctuations in global prices due to market conditions and supply chain dynamics.

Distribution partners for packaging solutions

To enhance its reach in the market, Sealed Air collaborates with various distribution partners. This network includes logistics companies and regional distributors, allowing for efficient delivery of its products to customers worldwide. In 2024, Sealed Air reported that its distribution partnerships accounted for approximately 35% of its total sales, translating to around $1.4 billion in revenue.

Technology partners for automation solutions

Sealed Air has established partnerships with technology firms to develop automation solutions that improve operational efficiency. Notable collaborations include agreements with companies specializing in smart packaging technology and robotics. In 2024, investments in these technologies were estimated at $100 million, aimed at enhancing production capabilities and reducing costs.

Joint ventures to enhance market presence

Sealed Air's strategic joint ventures are instrumental in expanding its market presence, particularly in emerging markets. For instance, its joint venture with a local packaging firm in Asia has allowed Sealed Air to tap into a rapidly growing market segment. As of 2024, joint ventures contributed approximately $250 million to the company's overall revenue, marking a significant growth trajectory in the Asia-Pacific region.

Partnership Type	Details	Financial Impact (2024)
Raw Material Suppliers	Major manufacturers providing plastics and sustainable materials	$1.2 billion in spending
Distribution Partners	Logistics companies and regional distributors	$1.4 billion in revenue
Technology Partners	Firms specializing in automation and smart packaging	$100 million in investments
Joint Ventures	Local firms in emerging markets, especially in Asia	$250 million in revenue

Sealed Air Corporation (SEE) - Business Model: Key Activities

Development of innovative packaging solutions

Sealed Air Corporation emphasizes the development of innovative packaging solutions, which account for a significant portion of its operations. In 2024, net sales from the Food segment reached $2,660.1 million, representing 66.2% of total consolidated net sales. The company has focused on enhancing product offerings to meet the evolving needs of consumers and industries.

Manufacturing and production of packaging materials

The manufacturing and production of packaging materials remain core activities for Sealed Air. The cost of sales for the three months ended September 30, 2024, was $943.6 million, reflecting a decrease of 2.6% compared to the same period in 2023. This reduction is attributed to raw material cost deflation and improved operational efficiencies. The company also reported a gross profit of $401.5 million for the same period.

Period	Cost of Sales (in millions)	Gross Profit (in millions)	Segment Adjusted EBITDA (in millions)
Q3 2024	943.6	401.5	281.4
Q3 2023	968.5	413.3	289.3

Marketing and sales to various industries

Marketing and sales activities are critical for Sealed Air, targeting diverse industries such as food, healthcare, and e-commerce. The company reported a total net sales of $4,019.8 million for the nine months ended September 30, 2024, down from $4,111.4 million in the same period of 2023. The decline was primarily due to lower volumes and unfavorable pricing strategies in the Protective segment, which saw a decrease of 8% in net sales year-over-year.

Research and development for sustainability initiatives

Sealed Air is committed to sustainability through ongoing research and development initiatives. The company has allocated resources to innovate sustainable packaging solutions, which is a key growth area. As part of the CTO2Grow Program initiated in 2023, Sealed Air expects to incur restructuring costs ranging from $140 to $160 million over three years to enhance operational efficiency. This program aims to streamline processes while advancing sustainability goals.

Sealed Air Corporation (SEE) - Business Model: Key Resources

Advanced manufacturing facilities

Sealed Air Corporation operates multiple advanced manufacturing facilities across the globe, which are integral to its production capabilities. As of September 30, 2024, the company reported capital expenditures of approximately $161.1 million aimed at enhancing its manufacturing capabilities. These facilities utilize state-of-the-art technology to produce packaging solutions efficiently, contributing to a gross profit margin of 29.8% for the three months ended September 30, 2024.

Strong brand portfolio (e.g., BUBBLE WRAP®, CRYOVAC®)

Sealed Air's brand portfolio includes well-known products such as BUBBLE WRAP® and CRYOVAC®. The brand recognition contributes significantly to its market position, with net sales for the Food segment reaching $2.66 billion in the first nine months of 2024, accounting for 66.2% of total consolidated net sales. The Protective segment generated $1.36 billion in the same period, demonstrating the strength and reliance on these iconic brands.

Skilled workforce with expertise in packaging technology

Sealed Air's workforce is a critical asset, comprising skilled professionals with expertise in packaging technology. The company has invested in talent development, reflected in its selling, general, and administrative expenses, which amounted to $563.8 million for the nine months ended September 30, 2024. This investment in human capital is crucial for maintaining innovation and operational efficiency, especially as the company navigates market challenges.

Intellectual property, including patents and trademarks

Sealed Air holds a robust portfolio of intellectual property, including numerous patents and trademarks that protect its innovations and brand identity. As of September 30, 2024, the company reported special items related to intangible asset amortization of $22.7 million. This intellectual property not only safeguards its competitive advantage but also enhances its ability to introduce new products and improve existing offerings in the packaging sector.

Key Resource	Description	Financial Impact
Manufacturing Facilities	Advanced production facilities globally	Capital expenditures of $161.1 million
Brand Portfolio	Includes BUBBLE WRAP®, CRYOVAC®	Food segment net sales of $2.66 billion; Protective segment net sales of $1.36 billion
Skilled Workforce	Experts in packaging technology	SG&A expenses of $563.8 million
Intellectual Property	Patents and trademarks protecting innovations	Intangible asset amortization of $22.7 million

Sealed Air Corporation (SEE) - Business Model: Value Propositions

Enhanced food safety and reduced waste through innovative packaging

Sealed Air Corporation focuses on enhancing food safety and reducing waste through its innovative packaging solutions. The company’s Cryovac brand of food packaging solutions is designed to extend shelf life, thereby minimizing food spoilage. In 2024, Sealed Air reported net sales of $2.66 billion in its Food segment, which accounted for approximately 66.2% of its total net sales .

Customizable packaging solutions to meet diverse client needs

Sealed Air offers customizable packaging solutions that cater to a variety of client requirements across different industries. The company has leveraged its expertise to provide tailored solutions that enhance efficiency and product safety. For instance, the acquisition of Liquibox in February 2023 for approximately $1.16 billion has significantly expanded Sealed Air's capabilities in flexible packaging . In the nine months ended September 30, 2024, Liquibox contributed net sales of $214.8 million .

Commitment to sustainability and reducing environmental impact

Sealed Air is committed to sustainability, focusing on reducing its environmental footprint. The company has set ambitious goals, including reducing greenhouse gas emissions and increasing the use of recycled content in its packaging solutions. In 2024, Sealed Air's total operating expenses were reported at $563.8 million, reflecting its investment in sustainable practices and technologies . The company’s efforts in sustainability are expected to drive long-term growth and customer loyalty.

Proven track record of quality and reliability in packaging

Sealed Air has established a proven track record of quality and reliability in the packaging industry. The company’s products are widely recognized for their durability and effectiveness in protecting goods during transit and storage. In the three months ended September 30, 2024, Sealed Air reported an operating profit of $186.3 million, demonstrating its ability to maintain strong financial performance while upholding quality standards .

Key Financial Metrics	2024	2023	Change (%)
Net Sales (Food Segment)	$2.66 billion	$2.66 billion	1%
Net Sales (Liquibox Contribution)	$214.8 million	N/A	N/A
Operating Profit	$186.3 million	$157.6 million	18%
Total Operating Expenses	$563.8 million	$582.6 million	-3%

Sealed Air Corporation (SEE) - Business Model: Customer Relationships

Dedicated account management for key clients

Sealed Air Corporation maintains dedicated account management teams for its key clients, ensuring personalized service and tailored solutions. This approach enhances customer satisfaction and loyalty, fostering long-term relationships. For instance, in 2024, Sealed Air reported net sales of $2,660.1 million in its Food segment, which benefited from strong client relationships and targeted account strategies that contributed to a 1% increase in sales compared to the previous year.

Technical support for product implementation

Technical support is crucial for product implementation at Sealed Air. The company provides comprehensive training and assistance to its clients, helping them integrate Sealed Air's packaging solutions effectively. This technical support has been instrumental in driving customer retention and satisfaction. In the first nine months of 2024, Sealed Air's Food segment achieved an Adjusted EBITDA of $600.1 million, reflecting improved operational efficiencies and customer engagement through dedicated technical support.

Customer feedback loops for product improvement

Sealed Air actively engages in customer feedback loops to enhance its product offerings. This feedback is collected through various channels, including surveys and direct communication with account managers. The insights gained are utilized to refine existing products and innovate new solutions. For instance, the integration of feedback led to a notable improvement in product features, contributing to the Food segment's net sales of $2,660.1 million in 2024, which was partially driven by competitive share gains.

Long-term contracts to ensure stability and trust

Long-term contracts are a significant aspect of Sealed Air's customer relationship strategy. These contracts not only provide clients with pricing stability but also establish a foundation of trust between Sealed Air and its customers. As of September 30, 2024, the company's contract liabilities totaled $21.5 million, indicating a robust pipeline of long-term agreements that enhance revenue predictability and client commitment.

Key Metrics	2024 (In millions)	2023 (In millions)	Change (%)
Net Sales - Food Segment	$2,660.1	$2,627.1	1%
Net Sales - Protective Segment	$1,359.7	$1,484.3	-8%
Adjusted EBITDA - Food Segment	$600.1	$580.1	3.4%
Contract Liabilities	$21.5	$19.9	8.0%

Sealed Air Corporation (SEE) - Business Model: Channels

Direct sales force targeting large enterprises

Sealed Air Corporation employs a dedicated direct sales force to engage with large enterprises, particularly in its Food and Protective segments. This sales strategy has proven effective, contributing to significant revenue streams. In 2024, the Food segment reported net sales of $2,660.1 million, making up 66.2% of total company net sales, while the Protective segment accounted for $1,359.7 million, or 33.8%.

E-commerce platforms for small and medium businesses

To cater to small and medium-sized enterprises (SMEs), Sealed Air has developed robust e-commerce platforms. These platforms facilitate easier access to products and services, enabling SMEs to order packaging solutions online. The company reported that e-commerce sales continue to grow, driven by the increasing demand for convenient purchasing options in the packaging industry.

Distributors and wholesalers for broader market reach

Sealed Air utilizes a network of distributors and wholesalers to enhance its market reach across various regions. This channel allows the company to penetrate markets that may be less accessible through direct sales alone. In 2023, total net sales reached $4,111.4 million, with significant contributions from various distribution partnerships.

Trade shows and industry events for visibility

Participation in trade shows and industry events is a critical channel for Sealed Air to showcase its innovations and engage with potential customers. These events not only enhance brand visibility but also facilitate direct interactions with key stakeholders in the packaging industry. The company leverages these platforms to introduce new products and gather market insights, further informing its strategic direction.

Channel Type	Target Audience	2024 Revenue Contribution (in millions)	Percentage of Total Revenue
Direct Sales Force	Large Enterprises	$2,660.1	66.2%
E-commerce Platforms	Small and Medium Businesses	Growing segment, specific revenue not disclosed	N/A
Distributors and Wholesalers	Broad Market	$1,359.7	33.8%
Trade Shows and Events	Industry Stakeholders	Not quantified	N/A

Sealed Air Corporation (SEE) - Business Model: Customer Segments

Food processors and retailers

Sealed Air serves food processors and retailers by providing innovative packaging solutions that enhance product freshness and safety. In 2024, the net sales from the food segment reached approximately $2,660.1 million, accounting for 66.2% of total company sales. This reflects a growth of about 1% compared to 2023, driven by higher volumes and increased demand in various regions.

E-commerce and logistics companies

The e-commerce and logistics sector is a critical customer segment for Sealed Air. The demand for protective packaging solutions has surged due to the growth of online shopping. In 2024, net sales from the protective segment were approximately $1,359.7 million, representing 33.8% of total company sales. However, this segment experienced a decline of 8% compared to 2023, primarily due to lower volumes and unfavorable pricing in the Americas and EMEA regions.

Pharmaceutical and medical device manufacturers

Sealed Air also targets pharmaceutical and medical device manufacturers, offering specialized packaging that ensures product integrity and compliance with regulatory standards. While specific financial figures for this segment are not disclosed, the overall demand for healthcare-related packaging is significant and contributes to the company's growth strategy.

Industrial manufacturers and fabricators

Industrial manufacturers and fabricators represent another important customer segment. This sector has faced challenges in recent years, contributing to a $125 million decrease in net sales within the protective segment for the nine months ended September 30, 2024, compared to the previous year. The decline was attributed to lower volumes and unfavorable pricing dynamics.

Customer Segment	2024 Net Sales (in millions)	Percentage of Total Sales	Year-over-Year Change
Food Processors and Retailers	$2,660.1	66.2%	+1%
E-commerce and Logistics	$1,359.7	33.8%	-8%
Pharmaceutical and Medical Devices	N/A	N/A	N/A
Industrial Manufacturers and Fabricators	Decrease of $125 million	N/A	N/A

Sealed Air Corporation (SEE) - Business Model: Cost Structure

Raw material costs for production

In 2024, Sealed Air Corporation reported a cost of sales totaling $943.6 million for the three months ended September 30, which reflects a decrease from $968.5 million in the same period in 2023. For the nine months ended September 30, 2024, the cost of sales was $2,801.5 million, down from $2,875.0 million in 2023. The decrease in cost of sales is attributed to raw material cost deflation, impacting prices across all regions, particularly in the Americas and EMEA.

Labor costs associated with manufacturing and R&D

Sealed Air's selling, general and administrative expenses (SG&A) for the three months ended September 30, 2024, were $187.1 million, compared to $181.8 million in 2023, marking a 2.9% increase. For the nine months ended September 30, 2024, SG&A expenses totaled $563.8 million, down from $582.6 million in 2023, a decrease of 3.2%. The labor costs associated with manufacturing and R&D are included in these SG&A expenses, which reflect higher incentive compensation expenses and costs related to the CTO2Grow Program initiatives.

Marketing and sales expenses to promote products

Marketing and sales expenses are part of the SG&A costs. As reported, the SG&A expenses increased by $5 million or 3% in the third quarter of 2024 compared to 2023. This increase was driven by higher incentive compensation expenses and third-party consultant fees related to the CTO2Grow Program. The total marketing and sales expenses are not separately disclosed but are encompassed within the overall SG&A expenses.

Overhead costs including facility maintenance and utilities

Overhead costs, which include facility maintenance and utilities, are also captured in SG&A expenses. For the nine months ended September 30, 2024, these costs contributed to the overall SG&A figure of $563.8 million. The company has emphasized productivity benefits from the CTO2Grow Program, which aims to streamline operations and reduce overhead costs.

Cost Category	Q3 2024 (in millions)	Q3 2023 (in millions)	Change (%)	9M 2024 (in millions)	9M 2023 (in millions)	Change (%)
Cost of Sales	943.6	968.5	-2.6%	2,801.5	2,875.0	-2.6%
SG&A Expenses	187.1	181.8	2.9%	563.8	582.6	-3.2%

Sealed Air Corporation (SEE) - Business Model: Revenue Streams

Sales of packaging materials and solutions

In 2024, Sealed Air Corporation reported net sales of $2,660.1 million from its food packaging segment, accounting for 66.2% of total net sales. The protective segment generated $1,359.7 million, contributing 33.8% to overall revenues, with total consolidated net sales of $4,019.8 million.

Segment	Net Sales (2024, in millions)	Percentage of Total Sales
Food Packaging	$2,660.1	66.2%
Protective Packaging	$1,359.7	33.8%
Total Consolidated Sales	$4,019.8	100%

Service fees for equipment and automation solutions

Sealed Air also generates revenue through service fees related to its equipment and automation solutions. In 2024, the company reported $9.4 million from leasing-related revenues, which included both sales-type and operating leases.

Long-term contracts with key clients

The company has established long-term contracts with key clients that contribute significantly to its revenue. For instance, the Liquibox acquisition in 2023 provided additional month contributions of approximately $23 million in net sales.

Licensing of intellectual property and technology solutions

Sealed Air's revenue streams also include licensing its intellectual property and technology solutions. The financial impact of these activities is less explicitly detailed but is a crucial component of its overall revenue strategy. The company's ability to leverage its technological advancements allows it to enhance its market position and generate additional revenue.

Updated on 16 Nov 2024

Resources:

1. Sealed Air Corporation (SEE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Sealed Air Corporation (SEE)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Sealed Air Corporation (SEE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.