The sole maker of paper straws in the U.S. has been acquired in a deal designed to help it keep up with skyrocketing demand.
As cities across the country and companies across the globe move away from plastic straws, Fort Wayne, Indiana-based Aardvark Straws has struggled to meet the unprecedented demand.
Hoffmaster Group, a leading U.S. manufacturer of premium disposable tableware based in Oshkosh, Wisconsin, acquired Aardvark Straws, owned by Precision Products Group, on Monday morning. The financial details of the deal weren’t released.
“In the coming months, we will aggressively ramp up Aardvark’s manufacturing capacity to meet the rapidly accelerating demand for paper straws,” Andy Romjue, president of Hoffmaster’s foodservice division, said in a statement. “We are committed to being a reliable supply source for paper drinking straws in the foodservice market.”
Within the last year, cities such as San Francisco, Seattle, Fort Myers, Florida, Malibu, California, and Vancouver have banned the use of plastic straws, while others, such as New York, are moving in that direction. Companies including Starbucks, American Airlines and Disney, have announced that they’re eliminating plastic straws.
“[Hoffmaster’s] knowledge of the foodservice market paired with their resources will aid the company in providing billions of quality paper straws to restaurants and businesses looking to implement necessary changes to protect our environment,” said Precision Products CEO Dave Hooe. “We’re proud of how far Aardvark has come and look forward to continued success with Hoffmaster.”
Aardvark’s paper straws debuted in 2007, as the anti-plastic movement began to emerge. In the 10 years since reintroduction, the company has seen year-over-year growth, according to David Rhodes, the company’s global business director. This last year’s growth, however, is beyond anything the company could have expected: 5,000 percent.
Aardvark said it’s talking to major brands that are looking for alternatives to plastic straws.
This acquisition, according to Hoffmaster, will provide Aardvark with the necessary resources to fulfill orders and meet demand. There currently is a lead time of several months for orders depending on their size.
Hoffmaster has a six- to nine-month plan for expansion and ramping up Aardvark’s production, according to Aadvark. However, Hoffmaster’s strategy doesn’t include changing the paper straw itself, because it doesn’t disintegrate or get soggy in drinks and is naturally degradable and compostable.
