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Case Study - CPG - Paper Packaging - Cost Rise - Liquidity - Flexibility

Paper Packing Price Protection Program

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Stable worked with an international Consumer Packaged Goods (CPG) company to help them manage paper packaging price volatility

A risk that was increasingly impacting their profit margins.
The Challenge

Paper packaging is indispensable to many CPG companies

But paper packaging prices are unpredictable and while some companies may be able to fix their purchase prices out into the future, they usually can’t do this for very long. And if they do fix prices, they’re unable to adjust purchase contracts if market prices should drop.

Stable’s program gave the client 12 months of protection against rising paper packaging prices

The protection was directly linked to robust and independent Fastmarkets/RISI price data, so when market prices moved against the client, Stable paid them quickly and automatically, without the need for a lengthy claims process. Stable’s solution smoothed the volatility of the cost of paper packaging, protected the client from a worst-case scenario and gave them peace of mind so they could focus on their business.

Stable’s price protection program allowed the client 
to manage exposure to paper packaging price volatility with
an innovative and targeted solution that zeroed in on
their precise exposure

  • When paper packaging prices rose, the client’s settlement was calculated automatically and paid quickly.
  • Stable’s protection contract was linked to a third party, independently published benchmark price selected by the client.
  • The client was able to choose protection levels which made sense for their business.
  • The protection contract, like all of Stable’s products, was backed by highly rated insurance companies.