Berry Global Inc - Contract Renewal Negotiation Report
Expires: March 31, 202675 Days Remaining
Negotiation Leverage Score
€1.6M
Annual Contract Value
€3.2M total (2-year term)
€160K-240K
Potential Savings
10-15% reduction opportunity
Executive Summary
⚠️ Action Required: Notice deadline is approximately December 31, 2025 (90 days before March 31, 2026). You must act within the next 2 weeks to prevent auto-renewal.
Contract Overview
- Supplier
- Berry Global Inc
- Product/Service
- Closure & Cap Supply - Sport caps, flat caps, and tamper-evident seals
- Current Term
- April 1, 2024 - March 31, 2026 (2 years)
- Contract Value
- €3,200,000 (€1.6M annually)
- Site
- Dongen Production
- Payment Terms
- Net 60 days
- Renewal Terms
- Auto-renews for 1-year periods unless 90 days notice given
Key Findings
💪 Your Strengths
- Berry recently merged with Amcor (April 2025) - integration uncertainty
- Significant buyer - large volume commitment potential
- Strong quality performance leverage (zero defect target met)
- Innovation partnership value
- Market competition available
⚠️ Considerations
- No minimum volume commitment in current contract
- Already receiving volume discounts (3% at 20M, 5% at 30M units)
- Payment terms (Net 60) longer than industry standard
- Product customization (color matching) creates switching costs
- Quality certifications required are standard
Recommendation
Strategic Approach: Negotiate aggressively. Berry's merger with Amcor creates uncertainty and opportunity. Target 10-15% cost reduction, improved payment terms to Net 45, and enhanced volume rebates. Alternative suppliers exist in the caps/closures market.