Reynolds Consumer Products, the company behind household brands such as Hefty trash bags and Reynolds Wrap aluminum foil, last week kicked off the first billion-dollar IPO of the year.
The stock, trading under the symbol REYN, opened at $26 per share and quickly jumped to $30 per share, raising the company's market cap to nearly $6 billion and coming out of the gate as the largest ever IPO for a home goods maker.
CEO Lance Mitchell chalked up the opening to the company's ability to make a compelling case to investors — despite the seemingly static nature of the consumer-goods business.
"This was the right time for Reynolds Consumer Products to go public because recently we've made some significant investments in both new products as well as some manufacturing cost initiatives," Mitchell told Cheddar. "It was a very strong and interesting story for them."
Mitchell pushes back against the idea that products like plastic wrap and parchment can't be innovated, or that new products don't drive profits for such an established brand.
"In 2018, 21 percent of our revenue came from products that were less than three years old," he said.
How does a company innovate basic kitchen supplies? For Reynolds, the answer is small product tweaks designed to save people time and effort.
"The vast majority of folks, including millennials, are still cooking at home and looking for convenience," Mitchell said. "Our products across the entire portfolio provide the gift of time, from meal prep to disposal to storage to overall serving."
Pop Up Parchment Paper Sheets are one example. These pre-cut parchment sheets are designed to not curl as easily at the edges and fit neatly into most pans.
He also noted that a number of Reynolds products use sustainable materials, including post-consumer plastics and unbleached parchment, which makes it compostable.
"Sustainability is something that has been on our dashboard for years," Mitchell said.