So What Club

Paper and packaging

Integrated versus non-integrated box maker

The prompt

Two fictional box makers in the United States sell corrugated boxes at USD 1,100 per tonne of board used. BoxCo buys its containerboard on the market at USD 650 a tonne. MillBox owns a recycled mill whose cash cost of board is USD 480 a tonne. Both spend USD 300 a tonne to convert board into boxes (labour, starch glue, ink, energy) and USD 60 a tonne on freight to customers. What is each one's cash margin per tonne? All figures are illustrative.

Before you reveal anything, plan your own structure and first move on paper. Then reveal one part at a time and compare.

Clarifying questions, with the interviewer's answers

Next case

Read the next worked case the same way: plan your own answer first, then reveal one part at a time.

Next case: Who earns what on one unit case of soft drinksThe lesson: Packaging economics: integration, the cycle and passing on costs
Facts checked against sources on

Spotted something wrong or out of date? Report a mistake. We check every report and correct the page.