Kari-Out Acquires Paper Bags USA to Address Growing Foodservice Industry Needs

(Tarrytown, NY) Kari-Out Company, a leading manufacturer, importer, and nationwide distributor of paper, aluminum, recyclable food containers and food ingredients in the restaurant takeout industry, today announced that it has acquired Paper Bags USA based in New Brunswick, NJ. 

With more states across the United States banning single-use plastic bags, the need for paper shopping bags continues to grow.  In fact, the state of New Jersey is set to implement one of the strictest bans in the nation starting on May 4, 2022.  According to Future Market Insights, The U.S. paper bag market is projected to hit over seven billion dollars in sales by 2030.

The acquisition expands Kari-Out’s focus on paper packaging and complements the company’s vast import network with new domestic production. “With this new facility, we will be able to service our customers faster and with a higher level of supply security,” said David Epstein Vice President for Kari-Out. 

At a time when pickup and delivery service is trending upward, paper packaging and bags are a growing market segments for Kari-Out. The company has immediate plans to double the capacity of the Paper Bags USA facility and enhance the printing capabilities to four-color printing.

“We currently offer a full line of white and kraft rope handle shopping bags in many sizes,” said Kimberly Cassar, head of Marketing.  “With this new acquisition, we will be able to provide even more custom print options to enhance our customers’ branded packaging.”

Kari-out is not new to the bag business. In fact, they have been making millions of paper food bags for over 20  years out of their Totowa, NJ facility.  They make everything from bags perfectly designed to hold egg rolls and ribs to sandwiches and tacos.  The company has already purchased additional food bag machines that will add capabilities for four color printing on food bags and significantly increase output to better serve their large quick-service restaurant customers. These four-color print machines increase capabilities for customers requiring uniquely branded bags.

“Food bags are an economic option,” adds Cassar, “because less material is required for each food occasion.” In addition, Kari-Out’s glassine-based bags are biodegradable, underscoring the company’s recent affiliation with the U.S. Composting Council, Biodegradable Products Institute and its commitment to a sustainable future.

About Kari-Out:

Founded in 1964, Kari-Out is a family-owned company with over 57 years of diversified manufacturing experience in to-go food packaging in the United States. The company employs over 600 people and has six facilities throughout North America supplying independent and national food service distributors. In line with the company’s mission to be environmentally responsible, two of Kari-Out’s largest production facilities are powered by solar energy. For more information, please visit www.kariout.com