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  "documentTitle": "Avery Dennison Corporation (AVY)",
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  "authorName": "Ben Axler",
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  "presentationDate": "2020-11-10 00:00:00",
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  "notes": "Uses a 'villain' framing by highlighting how private equity-driven consolidation shifts bargaining power away from Avery.",
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      "text": "We spoke with a former Avery employee who has over 20 years of experience in the label industry. He told us that he believes the risk of increased consolidation among converters is being underappreciated and continued consolidation will result in tangible pressure being exerted on Avery.",
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      "text": "We spoke with a former Avery employee who has over 20 years of experience in the label industry. He told us that he believes the risk of increased consolidation among converters is being underappreciated and continued consolidation will result in tangible pressure being exerted on Avery. Avery just included this as a new risk factor. We find multiple deals and add-on acquisitions in the label converter industry, backed by finically driven private equity buyers, seeing opportunities to drive further consolidation among the few thousand converter players in the fragmented industry.",
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      "text": "A significant consolidation of our customer base could negatively impact our business. For example, some converter customers served by our LGM segment have consolidated and integrated vertically. Some of our largest customers have acquired companies with similar or complementary product lines. This consolidation could increase the concentration of our business with our largest customers. Further consolidation may be accompanied by pressure from customers for lower prices. While we have generally been successful at managing customer consolidations, increased pricing pressures from our customers could have a material adverse effect on our business.",
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      "text": "Something that we saw over the course of time is the consolidation in the label converter base. So we saw a number of private equity firms buying up and consolidating label converter businesses, which puts more of the bargaining power in their hands.",
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      "text": "\"Something that we saw over the course of time is the consolidation in the label converter base. So we saw a number of private equity firms buying up and consolidating label converter businesses, which puts more of the bargaining power in their hands.\" — Former Avery Employee with 20+ Years of Experience. \"A significant consolidation of our customer base could negatively impact our business... increased pricing pressures from our customers could have a material adverse effect on our business.\" — 2019 Annual Report.",
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      "text": "Selected Private Equity Deals In The Converter Space",
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      "text": "Consolidation Among Converters (Avery's Customer Base)",
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