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Strategic & Financial Arguments(TM)
for the pulp and paper industry worldwide

March 2019

Participating as industry experts in pulp and paper financing and M & A deals around the world  for over two decades, we continue to see the same mistakes made over and over.  This newsletter is designed to help you avoid costly mistakes we have seen others make.  We will be giving you one or two points each month to help improve your performance.
Industry naysayers are still at it--Opportunity?

By Jim Thompson

The Natural Resource Defense Council (NRDC) came out with a bevy of press releases in late February lambasting the manufacturers of virgin toilet tissue. Procter & Gamble was in the cross hairs in this one: https://www.nrdc.org/experts/shelley-vinyard/missing-forest-toilet-paper .
Others that make virgin tissue products or high virgin component tissue products include Kimberly-Clark and Georgia-Pacific.
Of course, for advocates like NRDC, this all boils down to carbon footprint and climate change. Those on either side of the issue can drag out their own experts, their own data, and claim moral superiority.
However, it still is up to the consuming public to be the arbiter of perceptions. And for the audience of this newsletter, it is up to you to determine whether such matters and their ultimate outcome have a positive or negative effect of earnings (except in the case of GP, which is private).
Personally, I think the more important factor in such toilet paper wars is simply this--the patent, in large part, have run out on the innovations that produced softness, strength and absorbency. The peak years of discovery for enhancing these attributes was the 1970's, a time whose patents ran out long ago.
The opportunity now is if one of these behemoths of backside hygiene can find a way to impart the attributes people love in a product made of recycled fiber. If they can, they will have a new mantra to tout.
Have a comment?  Email me at jthompson@taii.com.

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If you have a casual question or a major deal, call me on my personal cell phone - 404-822-3412 or email me at jthompson@taii.com. We are here to help.




Jim Thompson, CEO
Talo Analytic International, Inc.



JRT Banker's Engineer