"Unless they are ready to roll out a set of products that are very rapidly degradable in every category, there is potential for a catastrophic fall in the business, if there is a combined perfect storm of political pressure from leftists, environmental groups, greenies, climate changers and so on."
If this company - which is a global industry leader (and no even more so after the Bemis acquisition) - faces an existential threat because of some sort of tectonic shift in global demand for packaging products, then there will be no packaging industry of which to speak.
And because packaging is fundamentally integral to economic activity, if there is no global packaging industry, there will be no global economy.
In fact, in many ways, as moves to "green-ify" supply chains intensify, the greatest beneficiaries of that structural change will be the leading industry players, such as AMCOR, who have the largest asset bases, biggest balance sheets and strongest cash flows, which render those companies capable of funding the required capital into R&D of environmentally-friendly packaging products.
As AMC is already doing:
So where you see "THREAT" for Amcor when it comes to pressure to move to recyclable or reusable packaging, I see "OPPORTUNITY" in the form of increased industry barriers to entry and an improvement in Amcor's competitive position.
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AMC Price at posting:
$16.08 Sentiment: Buy Disclosure: Held
(20min delay)