By Connor Hart

Greif Chief Executive Ole Rosgaard said customers nowadays care less about price and are focusing instead on reliability and performance, due in part to the economy.

That wasn't the case two years ago, when every conversation Rosgaard had with an existing or potential customers revolved around pricing negotiations for the company's industrial-packaging products, which include 55-gallon steel drums and large shipping containers.

Rosgaard attributes the changing sentiment in part to ongoing macroeconomic volatility: "In a world like we live in, with all the geopolitical risks and everything, customers are much more focused on reducing risk and keeping their operations running smoothly, rather than just focusing on price," he said Wednesday.

Rosgaard isn't upset about the shift. It allows Greif to ink more profitable deals, so long as the company puts its money where its mouth is and provides the best-possible product.

Companies could likely purchase 55-gallon drums from other packaging companies for a few dollars less apiece, which adds up quickly when ordering in bulk, Rosgaard said.

"But if the drum is leaking, or if you have a problem with the packaging, then it comes back to haunt you," he said. "We have certainly seen some customers who have experienced that, and I think that's also why the conversation is suddenly now shifting back from price."

Greif is responding to the change by developing new packaging solutions that offer increased reliability, in addition to being more sustainable. For example, the company has developed a proprietary technology that creates a thin layer of flexible glass within its packaging products for agricultural chemicals, allowing them to hold the harsh chemicals without making the outer plastic unrecyclable.

The company has started ramping production of these products, which Rosgaard expects to start materially boosting revenue later this year and into 2027.

At the same time, Greif continues to refocus its operations towards faster-growing sectors, such as agricultural chemicals and pharmaceuticals, while simultaneously streamlining the business. The steps come as high interest rates have weighed on home and auto sales --purchases that, while outside Greif's core business, drive demand for its packaging products, Rosgaard said.

"The economy feels muted almost everywhere," he said. "We're not waiting for it to improve. We're doing what we can ourselves in order to grow."

Rosgaard noted that Venezuela could represent a growth opportunity for the company, as interest in the country's oil has surged in recent weeks. President Trump has made increased oil production central to his plans for Venezuela, following the U.S. incursion earlier this month that deposed strongman Nicolás Maduro.

Greif used to operate three packaging plants in the country, all of which could be restarted if the appropriate licensing, safety parameters and compliance measures are put in place. Greif won't lead the charge back into the country, but it will be ready should a major oil company decide to reenter and ramp up production, Rosgaard noted.

"We solve our customers' problems," he said. "So if a global customer asks us for help, we will be there."

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

January 28, 2026 15:13 ET (20:13 GMT)

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