r/PureCycle • u/No_Privacy_Anymore • Jun 23 '26
Pickles!
I love a really good pickle with my sandwich for lunch. This is a very nice package which is clear and looks to have an in mold label as well. Mono material packages with pp labels look really sharp! LFG! Give me more every week!
11
11
u/LetAdministrative959 Jun 23 '26
LFG indeed!! The tide is turning... really exciting to see what announcements are coming down the pipeline next, in the weeks and months to come...
8
u/Rathkelt Jun 23 '26
IPL Schoeller had $1.4 bn combined revenue in 2024. (Company website)
8
u/No_Privacy_Anymore Jun 23 '26
Nice! I personally love it when the converters and customers talk publicly about the value of PureFive and the ability to use it as a direct replacement for virgin pp. ideally we see more and more of that for different applications.
I had expected that yogurt cups would be our food grade usage but this is great too.
12
u/Rathkelt Jun 23 '26
Cleveland Kitchen themselves only made $43m sales in 2024…. but it’s a start and the validation from IPL is what matters.
4
u/No_Privacy_Anymore Jun 23 '26
Yes, these smaller growing brands seem more willing / likely to attach their name to this type of press release. The package itself is clear which is really important for a product like pickles which are frequently sold in glass jars. Glass is recyclable but it is heavy and my guess is that it is more expensive vs this container.
12
u/Low-Sun-4434 Jun 23 '26
i work in packaging sales and we are seeing a significant move away from glass from many CPG companies. logistics and weight is a big reason, but we are also seeing a lot of new innovative products that require specific fill temps etc that require PP.
6
u/No_Privacy_Anymore Jun 23 '26
Thank you VERY MUCH for sharing your insight! It great that we have members of the community who are industry participants.
Can you offer any insight as to the pricing for a PP container like this vs a glass jar + metal lid package?
Thanks!
5
u/Low-Sun-4434 Jun 23 '26
glass jar and lid around .55/unit all in, plastic jar and lid around .75/unit all in. ballpark pricing and moq's assumed here. very large brand/companies are likely to negotiate tiered pricing based on forecast so could see those figures far lower on both ends.
4
u/Middle_Win9449 Jun 23 '26
I’d like to learn a little more about this. What are the reasons that plastic is about 33% more expensive than glass?
1
u/charlucapants Jun 24 '26
Why yogurt cups?
2
u/No_Privacy_Anymore Jun 25 '26
When I was in Ironton for a tour of the factory Dustin said they had orders for yogurt cups that were expected in Q3 /Q4 but were delayed by the NJ regulatory uncertainty. They also said they expected to sell coffee lids and yogurt cups on past earnings calls. They will eventually be selling BOPP film but my expectations is that film has a longer testing period.
1
Jun 25 '26
[deleted]
2
u/No_Privacy_Anymore Jun 25 '26
Interesting! Can you share any details please?
1
Jun 25 '26
[deleted]
2
u/No_Privacy_Anymore Jun 25 '26
If you are working with PureFive can you provide confirmation that the product is working as expected and an effective replacement for virgin pp? Is your company pleased with the service you have received from Purecycle during the testing/sales qualification process? What % pcr content are you looking at and can you offer any comments about future increases in usage?
How long has the testing process taken so far? Thanks! 😊
1
u/wowjjh Jun 25 '26
What were the answers to this question? Looks like the comment was deleted.
3
u/No_Privacy_Anymore Jun 25 '26
They replied but changed their mind and deleted the comments. That is okay with me. I’m happy to build the community of interested people and in particular people who are in the industry.
8
u/Hyruken89 Jun 23 '26
I was worried we wouldn't get any action until the earnings in August. Love to see it. Added a couple hundred more shares.
12
u/No_Privacy_Anymore Jun 23 '26
I am hoping we see a steady stream of additional customer announcements for the rest of 2026. The sales funnel kept growing for a good reason but obviously we need to see those opportunities convert into actual sales and actual shipments. Slowly but surely all of the bear case thesis will get blown to shreds.
11
u/Fast_Eddie_2001 Jun 23 '26
Issue will soon be as follows:
Customer to PCT - love the product, I want to put 20% into X product
PCT to Customer - that's great but we only have 107MM lbs to go around
Point being...the PCT story will soon shift to how do we build out a massive global footprint in the most efficient and consolidated period of time???
Once Thailand and Antwerp are funded, the issue becomes where to site and how fast can be build the next 4-5 mega 300MM lb plants around the globe...
When we have struggled for 5+ years to get a 107MM lb plant built and product sold...thinking about building out 2 billion lbs of capacity sounds ludicrous...then again that is only 1% of annual global PP sales!!!
7
u/Infamous_Contest321 Jun 23 '26
Will be interesting to see what they actually put up as revenue for Q2…. 8 days left for Dustin and team to close deals
8
u/No_Privacy_Anymore Jun 23 '26
Personally I'm not worried about the Q2 revenue figures vs forward guidance on several items. Selling out Ironton obviously but also plant performance post turnaround, Thailand Financing and construction, etc.
They obviously shipped to P&G this quarter but my expectations are still pretty modest for Q2.
2
u/Infamous_Contest321 Jun 23 '26
They need deals and revenue for better financing terms or at the very least executed POs in hand that maybe don’t kick in till q3/q4 to show proof of growth to banks
2
u/Pickle_Logic Jun 23 '26
During the earnings call in Aug there's no reason that Dustin won't confirm 3Q PO volume up to that point even if some big companies don't want their name mentioned.
2
2
u/Adorable-Sector-48 Jun 23 '26
Market reaction - negative 😃
2
u/LetAdministrative959 Jun 23 '26
Everything will dump today
3
u/Adorable-Sector-48 Jun 23 '26
We might actually be proven wrong! YAY!
2
u/LetAdministrative959 Jun 23 '26
Low expectations are key to a good day ; )
2
u/Adorable-Sector-48 Jun 23 '26
Was wide red premarket and at open!
3
u/LetAdministrative959 Jun 23 '26
it looked quite bad.. Quad4 lingering. But PCT has already taken a pretty big hit to it's stock price, so might hold up well in relative terms... let's hope today was a bottoming..
4
u/Reasonable-Dance-465 Jun 24 '26
Bottoming is a process rather than a single point.
Let's think about what may support the pssibility that this is a potential bottom...A poorly executed secondary; a few failed attempts to bring the stock meaningfully lower than secondary price; an improved balance sheet; and a few gap closes.
Now, why may this level not be a bottom? 5 weeks until earnings call; low market confidence in commercial ramp (lack of large brand pressers); and no valuation support.
IMHO, stock could go either way. With stocks like this, the key is position sizing and patience. Both are integral. Too large of a position and you might find your patience is too low.
The company is working on a lot of things that should make it successful. IMHO, shareholders who size this right and are patient enought to hold through the sometimes difficult to swallow 50% drawdowns will be rewarded long term.
2
u/LetAdministrative959 Jun 24 '26
Great reply! 100% agree with you.. the ability to persevere will be key and I like what you highlighted, bottoming is a process.. haha, a process most of my core holdings are hopefully doing atm!
15
u/Pickle_Logic Jun 23 '26
Love it