What changed in this filing

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Item 1. Business

2023-02-08 compared with 2022-02-09 · 35 added, 33 removed, 142 unchanged (32% of the section changed)

2 unchanged sentences

Securities and Exchange Commission (the “SEC”), the Reynolds Consumer Group business consisting of the combination of Reynolds Consumer Products Inc.

and the operations, assets and liabilities comprising Reynolds Group Holdings Limited’s Reynolds Consumer Products segment as reflected in the consolidated financial statements included elsewhere in this Annual Report on Form 10-K;

and the operations, assets and liabilities comprising Reynolds Group Holdings Limited’s Reynolds Consumer Products segment;

and (ii) after the Corporate Reorganization, Reynolds Consumer Products Inc.

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market share position in the majority of product categories in which we participate.

We have developed our market-leading position by investing in our product categories and consistently developing innovative products that meet the evolving needs and preferences of the modern consumer.

Over 65% of our revenue comes from products that are #1 in their respective categories.

We have developed our market-leading position by investing in our product categories and consistently developing innovative products to meet the evolving needs and preferences of the modern consumer.

Our mix of branded and store brand products is a key competitive advantage that aligns our goal of growing the overall product categories with our customers’ goals and positions us as a trusted strategic partner to our retailers.

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These factors generate loyalty which empowers us to develop and launch new products that expand usage occasions and transition our portfolio into adjacent categories.

We have strong relationships with a diverse set of customers including leading grocery stores, mass merchants, warehouse clubs, discount chains, drug stores, home improvement stores, military outlets and eCommerce retailers.

We have strong relationships with a diverse set of customers including leading grocery stores, mass merchants, warehouse clubs, discount chains, dollar stores, drug stores, home improvement stores, military outlets and eCommerce retailers.

Our customer relationships have been built on a long history of trust.

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Our brands have #1 market share positions across nearly all our categories

Category Brand Position

Aluminum foil (U.S.)

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Freezer paper

Nielsen xAOC last 52 weeks ended December 26, 2021.

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IRI MULO latest 52 weeks ended January 1, 2023 and Nielsen MarketTrack latest 52 weeks ended December 31, 2022.

We manage our operations in four reportable segments:

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• Reynolds Cooking & Baking :

Through our Reynolds Cooking & Baking segment, we produce branded and store brand foil, disposable aluminum pans, parchment paper, freezer paper, wax paper, butcher paper, plastic wrap, baking cups, oven bags and slow cooker liners.

Our branded products are sold under the Reynolds Wrap, Reynolds KITCHENS and E-Z Foil brands in the United States and selected international markets, under the ALCAN brand in Canada and under the Diamond brand outside of North America.

Through our Reynolds Cooking & Baking segment, we produce branded and store brand aluminum foil, disposable aluminum pans, parchment paper, freezer paper, wax paper, butcher paper, plastic wrap, baking cups, oven bags and slow cooker liners.

Our branded products are sold under the Reynolds Wrap, Reynolds KITCHENS and EZ Foil brands in the United States and selected international markets, under the ALCAN brand in Canada and under the Diamond brand outside of North America.

With our flagship Reynolds Wrap products, we hold the #1 market position in the U.S.

consumer foil market measured by revenue and volume.

consumer foil market measured by retail sales and volume.

We have no significant branded competitor in this market.

Reynolds is one of the most recognized household brands in the United States and has been the top trusted brand in the consumer foil market for over 70 years, with greater than 50% market share in virtually all of its categories.

Reynolds is one of the most recognized household brands in the United States and has been the top trusted brand in the consumer foil market for 75 years, with greater than 50% market share in most of its categories.

• Hefty Waste & Storage :

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We have the #1 branded market share in the U.S.

outdoor trash bag and slider bag segments, and the #2 branded market share in the tall kitchen trash bag segment.

large black trash bag and slider bag segments, and the #2 branded market share in the tall kitchen trash bag segment.

Our robust product portfolio in this segment includes a full suite of products, including sustainable solutions such as blue and clear recycling bags, compostable bags, bags made from recycled materials and the Hefty EnergyBag Program.

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We sell across a broad range of materials and price points in all retail channels, allowing our consumers to select the product that best suits their price, function and aesthetic needs.

These materials include sustainable solutions, such as Hefty ECOSAVE™ and Hefty Compostable Printed Paper Plates.

• Presto Products :

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Cooking products 1,287 1,314 1,159

Tableware 1,000 815 763

Unallocated (20) (21) (10)

Net revenues $ 3,817 $ 3,556 $ 3,263

(1) Waste and storage products are comprised of our Hefty Waste & Storage and Presto Products segments.

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These competitors include The Clorox Company, S.C.

Johnson & Sons, Inc., Poly-America, Handi-Foil Corporation, Republic Plastics, Ltd., Trinidad Benham Corporation and Inteplast Group, Ltd.

Johnson & Son, Inc., Poly-America, Handi-Foil Corporation, Republic Plastics, Ltd., Trinidad Benham Corporation and Inteplast Group, Ltd.

Within each product category, most of our products compete with other widely advertised brands and store brand products.

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This is driven by higher levels of sales of cooking products around major U.S.

holidays in our fourth quarter, primarily due to the holiday use of Reynolds Wrap, Reynolds Oven Bags and Reynolds Parchment Paper.

holidays in our fourth quarter, primarily due to the holiday use of Reynolds Wrap, Reynolds Oven Bags, Reynolds Parchment Paper and disposable aluminum pans.

Our tableware products generally have higher sales in the second quarter of the year, primarily due to outdoor summertime use of disposable plates, cups and bowls.

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We source a significant majority of our resin requirements from domestic suppliers.

We have a track record of actively managing and/or successfully passing along to customers raw material price fluctuations.

Centralized purchasing enables us to leverage the global purchasing power of our operations and reduces our dependence on any one supplier.

Centralized purchasing enables us to leverage the purchasing power of our operations and reduces our dependence on any one supplier.

We generally have one to two year contracts with resin and aluminum suppliers, which have historically provided us with a steady supply of raw materials.

In certain instances, we purchase selected finished goods from third-party suppliers to supplement capacity and source specialty items.

While we have not historically experienced significant interruptions from third party suppliers, we have seen increased delays in 2021 as a result of labor shortages and the timing of imports from third party suppliers.

While we have not historically experienced significant interruptions from third party suppliers, we have seen increased delays in 2021 and 2022 as a result of labor shortages and the timing of imports from third party suppliers.

Intellectual Property

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Employees and Human Capital

Our human capital resources objectives include identifying, recruiting, retaining, incentivizing and integrating our existing and new employees.

Our talent management and succession plan process includes the identification of key positions based on current and future business strategies, the identification of potential successors, and a plan for talent development.

To help build an engaged team, our objectives include successfully identifying, recruiting, onboarding, retaining and incentivizing our existing and new employees.

Our talent management and succession plan process includes the identification of primary succession roles based on current and future business strategies, the identification of potential successors, a list of action items and a plan for talent development.

As of December 31, 2022, we employed approximately 6,000 people, most of whom are located in our U.S.

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Environmental, Health & Safety:

We are committed t o protecting the safety, health and security of our employees and that of the environments in which we operate.

We are firm in our policy that we will not compromise employee health and safety or the enviro nment for profit or production.

We are passionate about health and safety and pride ourselves on our strategy of prevention through proactive r isk elimination and reduction.

We are committed to protecting the safety, health and security of our employees and that of the environments in which we operate.

We are firm in our policy that we will not compromise employee health and safety or the environment for profit or production.

We are passionate about health and safety and pride ourselves on our strategy of prevention through proactive risk elimination and reduction.

Our cross-functional leaders and team members work collaboratively to identify risks and to develop and implement control measures leveraging engineering solutions and new technology for mitigation.

As a result, in 2021, we have managed to reduce the number of injuries year-over- year and have relatively low injury rates compared to others in our industry .

The COVID-19 pandemic continued to introduce an array of unprecedented challenges, but we responded with urgency to develop and adjust policies and protocols as needed to help prevent spread of the disease in our facilities, while continuing to operate as an essential business to serve our customers and consumers.

The health and well-being of our workforce and of our families, as well as compliance with CDC guidelines and federal, state and local mandates, remain priorities for us.

We persist with illness prevention measures including allowing remote work where feasible, encouraging those who are sick to stay home, adjusting work practices to facilitate physical distancing, mandating face coverings, restricting visitation and travel and educating employees about the disease, prevention, vaccines and resources available to assist with coping during these difficult times.

Our safety performance continues to exceed the industry's average safety performance by a significant margin, and we continue to progress toward our goal of zero incidents through increasing awareness of opportunities for improvement and implementing effective solutions to reduce risks associated with slips, trips, and falls, as well as ergonomic hazards.

Diversity, Equity & Inclusion:

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We are committed to building a respectful workplace, educating our colleagues and integrating DE&I within our overall business strategy.

2021 was a significant year in our DE&I journey.

As a result of feedback from our colleagues, we took several critical steps.

We educated senior leaders on unconscious bias, completed our Dignity & Respect in the Workplace Survey and hosted listening circles to increase cross-cultural understanding.

Respect is the foundation of our DE&I strategy, and we will continue to implement best practices, educate our colleagues on the importance of implementing DE&I strategies and promote a culture where all feel they belong.

Both 2022 and 2021 were significant years in our DE&I journey.

Treating others with dignity, empathy and respect are the foundation of our DE&I journey, and we will continue to implement best practices, educate our colleagues on the importance of implementing DE&I strategies, promote a culture where all feel they belong and implement specific solutions to build and retain a more diverse and inclusive experience based upon equity.

Talent Acquisition:

We are committed to a diverse and inclusive workplace environment in which individual differences are recognized, respected and appreciated.

We provide job opportunities for growth in an exciting, dynamic and fast-paced workplace environment.

We have made investments in our Talent Acquisition team to better enable us to source and recruit talent in today’s challenging labor market, and assist in a great candidate experience and a welcoming new hire onboarding.

We have also created a comprehensive hourly recruiting strategy and social media plan for our plant locations, and have further invested in this area for a consistent approach as well as tools and resources to identify diverse talent.

We provide job opportunities for individual growth in our exciting, dynamic and fast-paced manufacturing plants and corporate office.

We have made investments in our Talent Acquisition team to better enable us to source and recruit talent in today’s challenging labor market, assist in a great candidate experience and provide a welcoming new hire onboarding.

To support our plants, we have also created a comprehensive hourly recruiting strategy and social media plan.

In addition, we have invested in tools and resources for a consistent and efficient approach to identifying diverse talent.

As many of our products are used in food packaging, our business is subject to regulations governing products that may contact food in all the countries in which we have operations.

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Compliance with these permits can require capital investment and, in some cases, could limit production.

In addition, a number of governmental authorities, both in the United States and abroad, have considered, and are expected to consider, legislation aimed at reducing the amount of plastic waste.

Programs have included banning certain types of products, mandating certain rates of recycling and/or the use of recycled materials, imposing deposits or taxes on plastic bags and packaging material and requiring retailers or manufacturers to take back packaging used for their products.

In addition, a number of governmental authorities, both in the United States and abroad, have implemented, considered, or are expected to consider, legislation aimed at reducing the amount of plastic waste.

Programs have included banning certain types of materials and products, mandating certain rates of recycling and/or the use of recycled materials, imposing deposits or taxes on plastic bags and packaging material and requiring retailers or manufacturers to take back packaging used for their products.

Moreover, as environmental issues, such as climate change, have become more prevalent, governments have responded, and are expected to continue to respond, with increased legislation and regulation, which could negatively affect us.

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In addition, the Environmental Protection Agency is regulating certain greenhouse gas emissions under existing laws such as the Clean Air Act.

A number of states and local governments in the United States have also announced their intentions to implement their own programs to reduce greenhouses gases.

A number of states and local governments in the United States have also implemented or announced their intentions to implement their own programs to reduce greenhouses gases.

These initiatives may cause us to incur additional direct costs in complying with any new environmental legislation or regulations, such as costs to upgrade or replace equipment, as well as increased indirect costs that could get passed through to us resulting from our suppliers and customers also incurring additional compliance costs.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business