Global leader’s RPC business grows 16% in one year as retailers around the world increase usage of reusable plastic containers for fresh products
IFCO, the leading global provider of reusable packaging solutions for fresh products and a Brambles Group company, has delivered fiscal year 2016 annual revenues of US$992 million. This result marks a 16% growth over the prior year at constant currency (this number includes RPC revenues which IFCO’s sister company CHEP generated in Australia, New Zealand, and South Africa). This momentous growth through four key activities:
- Increased use of IFCO RPCs by the firm’s current retailer customers as they continue to realize greater efficiencies and product quality benefits through increased supply chain standardization;
- Major new retailer contracts, especially in Europe;
- Expansion into new markets via acquisitions of market leading RPC providers in Japan, Chile, and Colombia; and
- Expansion of solutions for fresh products beyond fruit and vegetables, with continued adoption of IFCO RPCs for meat and eggs and the launch of new solutions for bread and seafood.
“Fiscal Year 2016 was an incredible year for our company,” said Wolfgang Orgeldinger, CEO of IFCO, “This high rate of growth is a testament to the value our customers receive from their use of our products. We are very grateful to all of our customers, suppliers, and employees worldwide for their support.”
All regions contributed to the growth of the company. Europe remains IFCO’s largest market with revenues of US$621 million and a constant currency growth rate compared to prior year of 15%. IFCO North America achieved revenues of US$199 million and a 4% constant currency growth rate. The rest of the world (IFCO Latin America, IFCO Asia and the RPC activities of CHEP in Australia, New Zealand, and South Africa) achieved revenues of US$172 million and grew by 38% at constant currency (11% before acquisitions in Chile, Japan, and Colombia).
IFCO was founded in 1992, and became a part of the global supply chain solutions company Brambles in March 2011. It has since grown to be the clear global market leader for RPC solutions for fresh products. IFCO has 30 subsidiaries around the world, which serve 675 retailers and more than 12,500 producers in more than 50 countries. The company has a logistics network with more than 80 Service Centers and owns and operates a global pool of over 270 million RPCs.
In addition to driving high levels of growth, IFCO also invested heavily in the development of innovations to enhance its service offering to customers. In the past 12 months, IFCO:
- Launched SmartGuardian™, a proprietary RPC wash process control technology, which monitors, controls, and reports critical control point parameters for RPC cleaning and sanitation;
- Introduced a variety of innovative merchandising solutions which allow the customization of standard reusable plastic containers (RPCs);
- Developed a new wood grain RPC for use in an expanded partnership with Walmart US; and
- Published a peer-reviewed Life Cycle Analysis study demonstrating that IFCO RPCs generate 31% less CO2 compared to single-use cardboard boxes.
“Our customers worldwide are focused on delivering the freshest food to consumers in the most efficient way possible, and we are committed to helping them achieve this,” said Mr. Orgeldinger, “Our business is growing because IFCO RPCs reduce costs and environmental impact and improve product quality and efficiency throughout the supply chain.”
In the fiscal year 2017, IFCO will continue its strong growth strategy in all markets and will also introduce a new brand campaign to better align the company’s image with its mission and rapidly growing, diverse business. The campaign will focus on IFCO’s mission to help its customers deliver fresh, high-quality food to consumers around the world and will launch globally on 13 September.