Founded in Wisconsin - Green Bay Packaging of Green Bay, Wisconsin

greenwoodphilip
Sep 17
9 min read

Green Bay Packaging, Inc. (GBP) has grown from a single facility in 1933 to over 40 locations across North America, focusing on custom corrugated packaging, folding cartons, and coated label products. Committed to sustainable innovation, GBP's Green Bay Mill is the world's first "net zero water" facility, and the $1 billion modernization of the Arkansas Kraft mill underscores this dedication. Although smaller than some competitors, GBP excels in technological leadership and environmental responsibility. Strategic expansions, like in Casa Grande, Arizona, bolster GBP's growth, while family ownership provides stable foundations for profitable investments.

Founded by George and Marguerite Kress in 1933, GBP initially improved wooden crates, emphasizing quality and customer needs, leading to the establishment of the Green Bay Pulp and Paper Mill in 1948. The Kress family has continuously led the company, with George Kress as President until 1960 and Chairman until 1995. His son, James F. Kress, became President and CEO in 1960, merging the Green Bay Box Company and Green Bay Pulp & Paper Mill in 1963, creating Green Bay Packaging's vertically integrated model.

George F. Kress: The Founder and Visionary

George F. Kress, born in 1903 in Green Bay, Wisconsin, embarked on his career in his family's horse collar and wooden box business. After graduating from the University of Wisconsin in 1925, he and his wife, Marguerite, founded Green Bay Packaging in 1933, focusing on improving wooden box designs. Kress served as President until 1960 and Chairman until 1995, driving innovations like the Green Bay Pulp & Paper Mill in 1948 and zero-discharge wastewater processes in the 1970s. They expanded into corrugated shipping containers and folding cartons, founding Green Bay Pulp & Paper Company in 1948. Kress's advancements in corrugating medium production and zero-discharge technologies set industry standards. Green Bay Packaging led the sector by using 100% recycled materials and sharing its technological innovations. Kress's contributions earned him numerous accolades, including the William H. MacDonald Award and an honorary doctorate from St. Norbert College. He guided Green Bay Packaging until his death in 1997, leaving a lasting legacy continued by his children.

James F. Kress: The Builder of Integration

In 1960, James F. Kress assumed the presidency of Green Bay Box Company and Green Bay Pulp & Paper, succeeding his father, George Kress. He led the organization for over five decades, serving as President and CEO until 1995 and subsequently as Chairman of the Board until 2019. In 1963, he consolidated the two entities to form Green Bay Packaging, Inc. Jim Kress was instrumental in developing the company's vertically integrated business model, which included acquiring timberlands and constructing the Arkansas Kraft Pulp & Paper Mill in 1965. In 1977, the second paper machine at this facility was named "Jim Dandy" in his honor. Demonstrating a strong commitment to environmental stewardship, he redesigned the Green Bay mill in 1991 to utilize 100% recycled fiber and achieved a closed-water system by 1992. His significant contributions to the industry were recognized with his induction into the Paper Industry International Hall of Fame in 2005.

William F. Kress: The Modern Innovator

William "Will" F. Kress, a third-generation leader of the Kress family, commenced his career at the company as a sales trainee in 1979 and ascended to the position of President in 1995, subsequently taking on the roles of CEO and Chairman in 2019. He has driven significant investments, bolstering the company's prominence in sustainable manufacturing. Notably, he led the development of the new Green Bay Mill, a $600 million venture and the world’s first "net zero water" facility, underscoring his dedication to environmental sustainability and the Green Bay community. Additionally, he manages the $1 billion "Project PowerPack" initiative to modernize the Arkansas Kraft paper mill, focusing on reducing greenhouse gas emissions. In recognition of his environmental contributions, he received the Environmental Citizen of the Year award from the Clean Water Action Council in 2022. Will Kress's leadership is highly esteemed, with employee ratings placing him in the top 25% among similarly sized companies on Comparably.

The Corrugated Packaging Industry - The Five Forces Analysis

Green Bay Packaging operates within the highly competitive corrugated packaging industry, which is characterized by significant entry barriers and evolving customer demands. The threat of new entrants is minimal due to high capital requirements and the necessity for vertical integration, such as owning paper mills and timberlands, which demand substantial investment. Advanced technology and automation further elevate these barriers. Although traditional cardboard remains cost-effective, sustainable alternatives like seaweed and mushroom-based packaging present a moderate threat, limited by high costs and scalability challenges. Corrugated packaging continues to be strong due to its versatility and well-established recycling systems.

Buyers in sectors such as food and beverage and e-commerce exert considerable bargaining power, demanding price reductions and customized solutions. The industry's shift towards sustainability benefits companies like Green Bay Packaging that invest in green technologies. Vertical integration enables Green Bay Packaging to maintain low supplier power, effectively controlling raw material costs and preventing supply disruptions. Competing against major players like International Paper, Green Bay Packaging focuses on differentiation, innovation, and value propositions. Industry consolidation and technological investments, such as WestRock's "Box On Demand," enhance efficiency. Green Bay Packaging's strategic acquisitions and advancements, including the new Green Bay Mill, demonstrate its proactive approach in this competitive market.

The Green Bay Packaging Strategy

Green Bay Packaging distinguishes itself from larger competitors like O-I Glass and International Paper through its core competencies rather than its size. While not among the top revenue generators in North America, the company's family-owned structure and vertical integration enable investments in advanced technology and sustainability, as evidenced by initiatives such as the Green Bay Mill and Project PowerPack. This approach addresses the increasing demand for environmentally conscious partners, emphasizing sustainable and innovative solutions to build long-term relationships. The company's key strengths include its family-owned model, vertical integration, innovation, and extensive national reach, even though its smaller scale poses a limitation. Opportunities are present in the growing demand for sustainability, market expansion, and new partnerships, while threats include intense competition and potential disruptions from alternative packaging technologies.

The company's strategy is guided by the Hambrick Strategic Diamond Framework, focusing on Arenas, Vehicles, Differentiators, Staging, and Economic Logic. Green Bay Packaging concentrates on corrugated containers, folding cartons, and coated label products, with a fully integrated value chain extending from timberlands to fiber mills. With operations in over 40 locations across North America, primarily in the Midwest and Southern U.S., and expanding into the Southwest, growth is driven by greenfield expansions and strategic acquisitions such as the $600 million Green Bay Mill and new facilities in Tulsa and Fort Worth. Acquisitions like Midland Packaging enhance market presence. The company utilizes vertical integration, innovation, and technological leadership to mitigate price volatility and lead in sustainability, exemplified by the net zero water Green Bay Mill. Family ownership supports a long-term strategy that combines acquisitions with greenfield developments for sustainable market penetration. Economic success is achieved by positioning as a premium partner, focusing on cost management through integration and innovation to capture market share and align with customer values for sustainability.

Green Bay Packaging's Vertical Integration: A Sustainable Competitive Advantage

Green Bay Packaging's business model is characterized by its complete vertical integration, covering the entire value chain from raw material sourcing to product delivery. This end-to-end control creates a closed-loop system, offering a competitive edge. Key operational units include the Fiber Resource Division, which manages sustainable forestland and supplies virgin fiber, and the Paper Mill Operations, featuring both a virgin fiber mill and a recycled fiber mill, ensuring a steady paperboard supply. The Converting Operations transform this paper into various packaging solutions. This integrated structure strategically insulates the company from raw material price volatility and supply chain disruptions and embodies a long-term environmental strategy. By owning timberlands, the company commits to responsible forestry and biodiversity. The dual mill system supports a circular economy, balancing virgin and recycled fibers for sustainability beyond mere corporate responsibility.

Expansion of Green Bay Packaging Across North America

Green Bay Packaging has significantly expanded its operations from a single box plant in Wisconsin to over 40 locations across North America, thereby enhancing its capacity for rapid market response and efficient service delivery. The company's facilities are strategically located to support its vertically integrated business model, encompassing a diverse range of operational types. Primarily concentrated in the Midwest and Southern United States, with recent expansions into the Southwest, the network includes multiple corrugated box plants and sales offices in Texas and Wisconsin, alongside mill operations in Green Bay and Arkansas. The acquisition of land in Casa Grande, Arizona, represents a strategic initiative to strengthen its presence in the Southwest, capitalizing on the existing office in Tempe. The company's extensive footprint also includes specialized facilities such as the Pinecrest Lumber Mill in Arkansas and coated products divisions spanning from California to Virginia, extending into Mexico.

Comprehensive Packaging Solutions by Green Bay Packaging

Green Bay Packaging offers a comprehensive range of packaging solutions tailored to meet diverse customer needs. At the heart of its offerings is Corrugated Packaging, providing custom-engineered solutions to protect products, enhance productivity, and optimize costs. The company also excels in specialized products, with its In-Store Displays division creating captivating and cost-effective retail displays that blend creative design with practical engineering. The Folding Cartons division focuses on packaging that protects and enhances product visibility on shelves. Meanwhile, the Coated Label Products division, operating across eight locations, delivers high-quality, sustainable label stock, including innovative materials like hemp fiber and recycled coffee bean bags, reflecting a commitment to environmental consciousness.

Green Bay Packaging has long been a leader in sustainable practices within the industry, with a legacy of environmental stewardship dating back to 1957 when it began recycling old corrugated containers. By 1972, it was the first paper mill to adopt a closed-water process, earning a National Gold Medal Award for water pollution abatement. In the early 1990s, the mill switched to using 100% recycled fiber, becoming one of the first globally to achieve zero wastewater discharge.

In 2018, the company invested over $600 million in a new state-of-the-art mill in Green Bay, replacing the original facility. This modern mill, the first built in Wisconsin in over 30 years, features a groundbreaking "net zero water" system, which reclaims municipal wastewater, saving over 200 million gallons of water in 2022 and significantly reducing pollutant discharge. Energy-saving technologies have also cut energy use by 11% and greenhouse gas emissions by 35% per ton of paper, aligning with market demand for sustainable supply chains.

Green Bay Packaging's commitment to sustainability extends to "Project PowerPack," a $1 billion initiative to modernize its Arkansas Kraft paper mill, focusing on decarbonization and efficiency improvements. The company also manages over 250,000 acres of forestland, ensuring sustainable forestry practices and holding certifications like ISO 9001:2015, FSC, and SFI. These efforts underscore Green Bay Packaging's dedication to ecological responsibility and supply chain transparency.

Strategic Growth Through Acquisitions and Expansion at Green Bay Packaging

Green Bay Packaging has strategically expanded its market presence over the past decade through key acquisitions, including Midland Packaging and Display, Great Lakes Packaging Corporation, and Baird Display in 2014 and 2015, followed by Wisconsin Packaging Corporation, Grand Traverse Container, Inc., and Citadel Industries in 2018. The June 2022 acquisition of Interstate Packaging Corp. in Minnesota highlights this approach, enhancing operations in Minnesota and Iowa. These acquisitions focus on culturally aligned businesses with strong leadership, allowing Green Bay Packaging to serve its customers on a larger scale.

The company's growth strategy combines targeted acquisitions with greenfield expansions into high-growth markets. Their recent land acquisition in Casa Grande, Arizona, aims to establish a significant corrugated box operation near Phoenix, leveraging existing market knowledge from their sales and distribution office in Tempe. Casa Grande’s rapid growth and business-friendly environment make it an ideal expansion site. This controlled growth model emphasizes cultural fit and strategic location, ensuring long-term market leadership.

Green Bay Packaging: Strengthening Communities Through Commitment and Innovation

Green Bay Packaging embodies a deep commitment to its community, a value solidified with the George Kress Foundation's creation in 1953 by George F. Kress. The foundation is driven by the belief that enhancing lives strengthens the community, focusing on key areas such as Health & Human Services, Community Advancement, Education, and Arts & Culture. The company's dedication extends to employee-focused initiatives, offering paid volunteer time and fostering workforce development. "Project PowerPack" exemplifies their investment in people, creating career pathways and community growth through internships, scholarships, and training programs in collaboration with local schools and institutions, underscoring their role in enhancing long-term economic and social vitality.

Closing

Green Bay Packaging thrives on a robust legacy, emphasizing vertical integration and innovation as key competitive edges. Its family-owned structure fosters a long-term vision, facilitating substantial capital investments and disciplined growth, ensuring resilience against market fluctuations and laying a strong foundation for future expansion. The new Green Bay Mill and Arkansas Kraft Mill upgrades are strategic moves to capture a larger share of the global sustainable packaging market. As demand for environmentally-conscious supply chains rises, Green Bay Packaging’s leadership in sustainability offers a compelling value beyond price competition. The company is set for sustained growth through strategic acquisitions and expansions into new, high-growth regions, leveraging its unique business model and reputation for sustainability and innovation to maintain its competitive edge and secure its future as a profitable, responsible industry leader.

CITATIONS

Founded in Wisconsin - Green Bay Packaging of Green Bay, Wisconsin

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