Jim, what is the importance of ThermoSafe’s temperature-controlled packaging solutions for the life sciences industry?
Sonoco, a company with over 125 years of history, welcomed ThermoSafe into its portfolio in 2011. To strengthen ThermoSafe's strategic presence in Europe, Sonoco acquired Laminar in 2015. In the years that followed, ThermoSafe achieved groundbreaking advancements in product development, becoming the first packaging provider to offer a truly comprehensive range of solutions across sizes, temperature ranges and applications.
This strategic evolution not only aligned with ThermoSafe's mission to lead in innovation but also positioned the company to meet the unique demands of an extraordinary period in human history. As a result, it became a natural progression for ThermoSafe to play a pivotal role in supporting the global vaccine rollout. ThermoSafe's temperature-controlled packaging was critical in delivering vaccines at unprecedented scales, addressing the stringent cold chain requirements for mRNA-based products with high fragility. This brought cold chain logistics into the public spotlight for the first time, highlighting its importance in delivering sophisticated medicines for complex illnesses.
The pandemic underscored the need for robust solutions to maintain extreme temperature requirements and stability in biologics. As healthcare innovations continue to advance, the role of temperature-controlled packaging is growing, ensuring that life-saving treatments remain viable during transportation. ThermoSafe has become integral in enabling such advancements, moving the most sophisticated medicines globally while addressing their fragility and preserving their efficacy.
Has the growing sophistication of treatments, such as biologics, changed the nature of your solutions?
Absolutely. ThermoSafe has evolved from a catalog-based business into a provider of highly customized solutions tailored to the needs of large pharmaceutical companies. Over the past decade, about 95% of ThermoSafe's products have transitioned to bespoke designs, reflecting the industry’s shift towards personalized medicine. Customers now require solutions that address not just temperature and time but also specific payload and delivery needs, signaling how rapidly medicine and science are advancing.
This transformation reflects the increasing complexity and specificity of treatments. ThermoSafe’s ability to innovate and provide tailored solutions has allowed it to meet these growing demands effectively.
Could you share more about the Pegasus ULD product and its significance?
The Pegasus ULD is a reusable air freight container designed for long-haul transportation, capable of maintaining a two to eight-degree Celsius payload for up to 13 days. This innovation addresses the need for bulk movements of high-value pharmaceuticals, often exceeding a million dollars in cargo value. It represents the final piece in ThermoSafe’s comprehensive portfolio, enabling global, end-to-end temperature-controlled logistics.
Designed with sustainability in mind, Pegasus aligns with customer expectations for eco-conscious solutions while ensuring stringent temperature and time requirements. Its triangulated model involving freight forwarders, airlines, and customers makes it a cornerstone for global pharmaceutical logistics.
You recently partnered with Saudi Cargo…
The Middle East is a focus market for growth due to its rapidly expanding pharmaceutical and healthcare sectors, driven by increasing investment in healthcare infrastructure, rising demand for advanced medical solutions, and growing regional populations. The region's strategic location as a logistics hub connecting Asia, Europe, and Africa also positions it as a key player in global supply chains, particularly for temperature-sensitive products like pharmaceuticals and biologics.
ThermoSafe’s partnership with Saudi Cargo highlights the growing influence of Middle Eastern freight carriers in global logistics. Saudi Cargo, alongside other major regional players, has been instrumental in accommodating complex models involving freight forwarders, airlines, and pharma companies. Their willingness to adapt and build open contracts has been vital in fostering a successful partnership.
Could you exemplify your work with some notable case studies?
During the pandemic, ThermoSafe tackled the unprecedented challenge of designing packaging for vaccines requiring temperatures as low as -80°C. This involved 50 design iterations by our talented ISC Lab engineers to balance product payloads and prevent supercooling. Despite immense pressure, the team developed prototypes, validated the designs, and produced nearly one million packages within seven weeks to support the global vaccine rollout. This effort not only demonstrated ThermoSafe’s agility but also underscored its critical role in managing extreme cold chain requirements.
More recently, ThermoSafe supported the launch of GLP-1 drugs, which address insulin resistance and obesity. Initially focused on bulk transport, the company quickly adapted to a direct-to-consumer model, delivering customized packages to individual homes. This shift, influenced by the "Amazon effect," reflects the growing expectation for convenience in healthcare logistics. ThermoSafe’s ability to scale its operations and innovate underscores its leadership in the evolving landscape of pharmaceutical cold chain logistics.
Our third case relates to our annual flu vaccine campaign in North America, which involves distributing over 100 million doses within just three months. This effort showcases our ability to operate at scale, moving sophisticated drugs quickly and in a protected format. It highlights the importance of tight timeframes, a responsibility that became even more apparent during the pandemic. The flexibility of our operations, thanks to owning all our plants and service centers, allows us to respond effectively across North America, Europe, and Asia.
Sustainability is an essential consideration in modern business. How does it align with ThermoSafe’s operations?
Sustainability is at the forefront of our strategy, rooted in Sonoco’s culture of recycled content and responsible packaging. As a packaging provider, we see it as a fundamental responsibility to address the issue of waste, particularly in reducing the amount of packaging that ends up in landfills. Our product offerings range from disposable to curbside recyclable and reusable solutions, reflecting our commitment to meeting diverse customer needs while prioritizing sustainability.
Key innovations include reusable parcel and bulk shipping options like the Orion® and Pegasus® as well as curbside recyclable options like the EnviroTherm. Additionally, as a material neutral organization, we are investing in biodegradable materials and drain safe gel solutions, underscoring our dedication to sustainable practices and the growing demand for eco-conscious packaging solutions.
Why did Sonoco decide to divest ThermoSafe?
Sonoco’s decision to sell ThermoSafe aligns with its strategy to simplify operations and focus on fewer, larger businesses. Feedback from the investment community has emphasized the complexity of managing a diverse portfolio. By divesting smaller businesses like ThermoSafe, Sonoco can streamline its operations and concentrate on its core franchise platforms, ensuring better alignment with investor expectations.
ThermoSafe presents an attractive opportunity for potential buyers due to its global brand recognition, leadership in the cold chain packaging sector, and double-digit growth potential. With operations spanning three continents and a critical role in pharmaceutical logistics, the brand offers a unique chance for interested parties to enter a high-growth industry that is essential to global healthcare.
Do you see yourself staying with Sonoco or going with ThermoSafe?
I would love to go with ThermoSafe. Over my career, I have worked in various businesses and corporate roles, but none as dynamic and respected as ThermoSafe. The company’s focus on integrity, efficacy, and trust sets it apart in a complex industry. Simplifying complexity while ensuring trust is delivered is both challenging and rewarding.
Working at ThermoSafe is exciting, especially with a young, dynamic team that brings energy and innovation to the table. Beyond the professional fulfillment, it is deeply gratifying to be part of a business that improves lives globally. Opportunities like this are rare, and I find it incredibly fulfilling to contribute to such meaningful work.
