My first response to the news that Amcor plc is buying Berry Global Group Inc. — probably just like most people following the industry — was "wow."
The second thought was a question that's going to be hard to answer: What does this mean for the supply chain?
The combined Amcor and Berry will have annual sales of $24 billion. Amcor is the largest blow molder in North America. Berry is the biggest injection molder in the region in addition to being a significant blow molder. They both also have extensive operations in thermoforming, while Amcor is a global leader in flexible packaging. (Berry recently spun off the bulk of its film operations into a new joint venture company, Magnera.)
The amount of resin purchasing power of that combined company is hard to picture. The companies' potential need for recycled content — driven by requirements from governments and their own customers — likewise would make them an even bigger player in the sale of post-consumer plastics. Machinery, auxiliary equipment, and operating software and control sales would outpace those of any competitors.
If the bigger Amcor wanted to invest in vertical integration to supply its own needs, then it would already have a very large in-house customer.
It's too early to know exactly what the new company will look like, but it definitely has the potential to really shake up packaging and the wider plastics industry.