Portola Packaging closes cosmetics division to focus on beverage

The firm said it saw potential in non-carbonated markets for aseptic, hot fill, extended shelf life and closures and bottles.

Its Portola Tech International business, which manufactured cosmetics closure and containers, was less than 10% of operations.

Over the past three years, the company claim it has grown its beverage closure volume by double-digit percentages annually. 

Manufacturing and quality initiatives, coupled with new stock and custom closures for tamper evident, aseptic and extended shelf-life applications are responsible for part of the growth—particularly in the juice, dairy and specialty beverage market segments, Portola said.

‘Time was right’​

Glenn Fish, senior vice president and chief financial officer at Portola Packaging, told FoodProductionDaily.com they felt the time was right to focus on the beverage sector. 

“We can now look at subjects we haven’t previously competed in and we can strengthen our current, such as dairy, segments and take more share in aseptic and hot fill and penetrate those markets.​

“It allows us to focus time and capital resources to see a return, to put all our eggs in the basket to get to the end goal.”​

Green initiatives are key attributes moving forward to secure business and put it to better use in beverage closures, Fish said.

“We see exciting growth opportunities in newer segments such as aseptic, extended shelf life and hot fill.”​

Better opportunities​

Fish added the move away from cosmetics made sense rationally to focus on better opportunities and higher earning competitive advantages.

“Essentially, time is of the essence if you are not getting returns on our business unit that you are putting time into.​

“Historically, [​the cosmetics segment] has not presented time and return for the same capital which we could put into beverage and closures and get a better return.​

“It was time to shed anything that isn’t contributing to our future success and cosmetics earnings weren’t matching what we were putting into it.” ​

Portola Tech International manufactures cosmetic closures and containers from Cumberland, R. I. and Nanhai, China and is expected to be liquidated by the end of the year.