Price Wise: Resins Risk Management; Sunny D’s ‘Cadillac’


Last time, I wrote about a resins risk management Roadmap. As with any roadmap, it shows your destination and ways to get there. When it comes to resins risk management, Sunny Delight has already "arrived" at its destination and is reaping the rewards. I had heard they had a resins risk management program, but until this week I didn't know it was that good.

Greg Ogborn is the Director of Purchasing for Sunny Delight, and he took time out to answer some risk management questions:

Please tell our Price Wise readers about yourself and your role at Sunny D.

I'm the Director of Purchasing for Sunny Delight Beverages Co. My team and I support all raw material and packaging Purchasing for 5 N.A. bottling plants

Unlike Sunny D, few processors hedge their resins price risk despite resin price volatility and the fact that resins comprise 50% or more of processing costs. Why is Sunny D different?

We've always been involved in commodity risk management, from corn to diesel fuel to natural gas and electricity. Since resin is a major contributor to COGS; it's been my mission since joining Sunny to find a method of effectively, economically managing this risk....
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