What is the Smarter Choice for Plastic Manufacturing…Color Concentrates or Liquid Color?

Over the past decade, consumer packaged goods (CPG) companies have increasingly prioritized cost reduction. While efforts have largely focused on innovations in package design and construction, attention has also shifted to other cost factors, such as colorants and design features.

Traditionally, CPG companies relied on the expertise of their molding partners in these areas. However, in recent years, colorant suppliers have taken a more proactive approach, presenting their cost-saving solutions directly to corporate decision-makers.

This shift has led to the growing adoption of liquid color in the packaging industry, because in some cases it has demonstrated ability to lower let-down ratios and reduce overall costs compared to traditional color concentrates. Despite these benefits, many processors remain hesitant due to the housekeeping challenges and high scrap rates often associated with liquid color.

 Overview of Liquid Color

Chroma Color® Liquid Color Alternative

Advancements in liquid colorant dosing systems over the past decade have greatly enhanced their user-friendliness, providing cleaner and easier handling solutions tailored to industry requirements. Liquid colorants have long delivered vibrant hues at low use rates, offering excellent color distribution ideal for tints and transparent applications. For instance, liquid colorants can achieve some pearlescent and metallic effects, enhancing shelf appeal for brand owners and packaging designers.

Additionally, liquid colorants can be processed at lower temperatures than traditional masterbatch, avoiding heat history degradation and eliminating pre-decomposition concerns. This makes them a reliable and efficient choice for achieving striking visual effects without compromising material integrity.

On paper, liquid color may seem cost-effective, promising aesthetic benefits at reduced expenses. However, the hidden drawbacks often complicate the overall production process.

Challenges of Liquid Color:

  • Complex Equipment Needs: Liquid color requires specialized pumps and hoses to integrate properly, complicating operations. For example: If a line stops and the equipment isn’t tied into the screw signal correctly the liquid pump will keep dosing, flooding the barrel with color.

In addition, Liquid is delivered through polyethylene tubes which can wear out and rupture, causing spills.  Additionally, these tubes are consumables not provided by the manufacturer and need to be purchased by the molder.

  • Handling Inefficiencies: High risks of spills and constant equipment maintenance make liquid color messy and inefficient. For example, liquid color often causes screw slippage, especially at higher letdown ratios, which results in the constant monitoring of the machine and severe delays in production.  When a liquid container empties, it often does so with no warning. This requires the machine to be stopped until the new container is ready to run and again, causes delays in production.

Liquid color also has a tendency when used for long periods of time to cause staining of the screw of the manufacturing machine The limited shelf life and frequent separation issues lead to waste.

  • Resin Compromises: Liquid color displaces resin, requiring more material to maintain shot weight, which can increase costs unexpectedly. For instance, a lower letdown ratio (LDR) may look appealing but adds resin expenses, diminishing perceived savings. In addition, liquid needs to be stored in temperature-controlled areas.  Additionally, shipping liquid in cold weather can allow it to freeze, ruining the color.
  • Waste & Sustainability: Liquid color cannot be fully used from containers, leading to scrap rates of up to 10%. Combined with disposal issues requiring hazardous waste removal, this contributes significantly to environmental concerns. Plus, when using regrind, the fines can mix with liquid and create clumps that block the flow of pellets through the feed throat.

The Efficiency of New Technology of Color Concentrates

Newer color concentrate technology offers a superior alternative that minimizes these inefficiencies. Unlike liquid color, advanced pelletized concentrates eliminate the mess, waste, and complex equipment while offering consistent color results across various applications.

Chroma Color® Pellet Color Concentrates

Advantages of Color Concentrate Pellets:

  • Sustainability: Liquid color’s carbon footprint is significant, with oil-based carrier systems adding to environmental impact. This technology’s carrier system uses fewer raw materials and reducing carbon output.
  • Ease of Use: These pellets integrate seamlessly into production lines, compatible with standard feeding systems. No pumps, no spills—just easy, efficient coloring.
  • Maximized Usage: Unlike liquid color, this technology allows for 100% use, reducing waste and ensuring every pellet contributes to the product.
  • Reduced Scrap and Downtime: Liquid color systems often cause scrap and require frequent purging, but these color concentrates pellets enable faster color changeovers with minimal waste, optimizing production efficiency.
  • Simplified Disposal: These pellets are also non-hazardous and disposed of in traditional waste streams, unlike liquid color, which needs special disposal and adds to a higher carbon footprint.

Comparing the Environmental Impact

Chroma Color® Pellet Color Concentrates Shipping

Packaging and Shipping:  A 1,000-pound order of this technology is packaged in Sustainable Forestry Initiative (SFI) rated cardboard and weighs about 25 pounds including the lid. Most processors have liquid color delivered in 5-gallon buckets so they can agitate the color before use. Obviously, pellets do not need to be agitated. To ship 1,000 pounds of liquid color in plastic buckets is roughly 100 pounds of packaging material used to ship the liquid color vs 25 lbs. of the new pellet technology.

Some liquid companies have touted a “Pump in a Drum” system for reusable packaging, but keep in mind doing this adds another shipment back to the manufacturer and increases the carbon footprint of the packaging in the life cycle assessment.

“Cradle to Grave” Sustainability: The complete lifecycle of this newer color concentrate is designed to be environmentally friendly, with fewer emissions and more efficient waste management. Liquid color’s extra shipments for hazardous waste disposal and inefficient usage only add to its environmental burden.

Why Chroma Color®’s G-Series Is the Future

Chroma Color® G Series, G2 & G3

Chroma Color®’s patented G2 and G3 technologies represent a breakthrough in the plastics industry. By combining the dispersion quality of liquid color with the ease and efficiency of pellets, G2 and G3 achieve vibrant, uniform colors at lower letdown ratios. This means manufacturers benefit from cost savings without sacrificing quality.

To explore how G2 and G3 can transform your production, visit: Chroma Color® G-Series.

About Chroma Color® Corporation
Chroma Color® delivers unparalleled color solutions for industries ranging from packaging to healthcare. With a focus on innovation and customer satisfaction, our G-Series technology and strategic growth have established us as industry leaders for over 50 years. Learn more at www.chromacolors.com.

Breen, Chroma, Carolina, and Hudson Color Companies To Form New Entity: Chroma Color® Corporation

McHenry, IL: Breen, Chroma, Carolina, and Hudson Color are combining the exceptional talent, technical capabilities, manufacturing capacity and geographic footprint into one business entity—Chroma Color® Corporation.

The four companies will start operating as a single entity with sound business values and an unyielding commitment to provide the plastic marketplace with high-quality products and services. The new business platform is designed to support continued growth and customer expansion in a dynamic marketplace.

Chroma Color® Corporation produces color concentrates of the highest quality and the shortest lead times in the industry. The extensive product lines of colorants and additives have performed exceptionally well for customers for over 40 years in markets such as: wire & cable, packaging, building & construction, consumer, medical, healthcare, lawn & garden, durables, sanitation, recreation & leisure, transportation and more.

“Our entire team is committed to taking our valued commercial partnerships to greater heights as we expand our substantial capabilities with the singular goal of enhancing our customers’ competitive positions,” stated Tom Bolger, Chief Executive Officer, Chroma Color® Corporation.

Chroma Color® Corporation Chairman, George Abd commented: “This is an exciting time for the company as it grows organically, leveraging its patented products, expert technological resources and considerable manufacturing capacity and through future strategic acquisitions. We look forward to great success for Chroma Color® Corporation.”

To learn more, visit Chroma Color® Corporation’s new website. It includes a comprehensive overview of the company’s technical and manufacturing capabilities, products, services and more. https://chromacolors.com

About Chroma Color® Corporation

Chroma Color® Corporation is a leading specialty color and additive concentrate supplier in the plastics marketplace. The business, with sales of greater than $150 million, currently has extensive technical and manufacturing color masterbatch capabilities throughout the United States. Arsenal Capital Partners has been strategic investor in the company since late 2017.

Carolina Color Acquires Chroma Corporation

July 9, 2018. (Salisbury, North Carolina). Carolina Color Corporation (“Carolina Color”) announced today it has acquired Chroma Corporation, based in McHenry, Illinois. Chroma Corporation (“Chroma”) is a leading specialty color and additive concentrate business serving packaging, electronics, and many other markets. With this acquisition, Carolina Color continues to grow its manufacturing footprint throughout the U.S. to leverage its growing suite of colorant and additive technologies to better serve existing and prospective customers. Terms of the transaction were not disclosed.

“We are pleased to see Chroma, with its solid reputation in the Midwest, join our incredibly strong color businesses, Carolina Color, Breen, and Hudson, which were combined last year into Carolina Color,” stated George Abd, Chair of the Board of the company. “By combining these businesses that bring great product technology and reputations in the industry, we continue to execute our strategy of building the finest colorant company serving our markets. We are especially pleased to add the Chroma facility and team in McHenry, IL to our company as a strong base from which to grow and better serve our Midwest customer base.”

“We will continue to acquire key businesses with the capabilities and resources in locations that complement our current portfolio with the singular goal of meeting the colorant needs of both large and small plastic converters,” added Howard DeMonte, President of Carolina Color.

Chroma has provided total color solutions from its corporate headquarters in McHenry, Illinois, for more than 50 years. Chroma produces custom formulated masterbatch colors, dry colors, additive concentrates, and pre-color compounds for the packaging, electronic, safety, automotive, recreational, medical, and consumer products industries.

“We are exceedingly pleased to become part of this exceptional business,” added Chroma CEO Tom Bolger. “We were not considering a sale when approached, but we quickly warmed to the idea after meeting the team, hearing the vision, and reviewing Carolina Color’s considerable progress. Additionally, I worked with several of the key executives at Carolina Color earlier in my career and know them to be very talented, high-caliber people. I could not be more excited to remain with the company and I look forward to working with the entire Carolina Color team as we move the company forward together.”

About Carolina Color Corporation

Carolina Color Corporation is composed of four leading specialty color and additive concentrate supplier brands in the plastics marketplace. The brands include: Breen, Chroma, Hudson, and Carolina Color. This combined business, with sales of greater than $150 million, currently has an extensive manufacturing footprint throughout the U.S. Carolina Color was acquired by Arsenal Capital Partners in late 2017.

About Arsenal Capital Partners

Established in 2000, Arsenal is a leading private equity firm that specializes in investments in middle-market specialty industrials and healthcare business services companies.  Since inception, Arsenal has raised institutional equity investment funds of approximately $3 billion.  Arsenal invests in industry sectors in which the firm has significant prior knowledge and experience and seeks companies typically in the range of $100 – $500 million of initial enterprise value.  The firm works with management teams to build strategically important companies with leading market positions, high growth, and high value-add.  For more information, please visit www.arsenalcapital.com

Arsenal Capital Partners Acquires Carolina Color and Breen Color Concentrates

New York, October 31, 2017 – Arsenal Capital Partners (“Arsenal”), a leading private equity firm that invests in middle-market specialty industrial and healthcare companies, announced today that it has acquired Carolina Color Corporation (“Carolina Color”) as well as Breen Color Concentrates, LLC (“Breen”) alongside the management teams of each company.

Now under common ownership, the combination of Breen and Carolina Color immediately establishes a leading specialty color and additive concentrate supplier in the plastics market. The combined business has five manufacturing facilities throughout the U.S. and can leverage its growing suite of technologies and products across the broader platform to better serve existing and prospective customers.

Headquartered in Salisbury, NC, Carolina Color is a leading supplier of custom color concentrates for the plastics industry serving customers across multiple end markets. The company’s unique G2® and G3® products are recognized as the premier technologies in the colorants space and offer customers the highest-loaded combination of pigments and additives in the industry.

Matt Barr, Vice Chairman of Carolina Color stated, “I am excited about our new partnership with Arsenal and believe they are uniquely positioned to support our next phase of growth and development. Arsenal has significant experience in the specialty chemical and plastics sectors, as well as a highly knowledgeable team that will help Carolina Color and Breen grow. We look forward to working with them as the company continues to focus on providing advanced color solutions for customers.”

Headquartered in Lambertville, NJ, Breen is a leading supplier of custom color concentrates for the plastics industry with a focus on serving the wire & cable, packaging, and consumer end markets. The company’s expertise in custom color formulations for PVC resins has enabled it to become the market leader in a broad range of market applications. Additionally, in February 2016 Breen acquired Hudson Color Concentrates, enabling its expansion into engineered resin-based concentrates and further expanding its manufacturing footprint in the Northeast and Midwest U.S. Breen and Hudson were majority-owned by Connecticut-based private equity firm, Capital Partners.

“The combination of Breen and Carolina Color is a perfect fit of two players in the color concentrate space,” said Howard DeMonte, President of Breen. “This combination brings together complementary manufacturing capabilities, broadens our base of technologies, and expands our market reach. All of this with a shared vision of excellent service by experienced teams will enable us to better serve our customers.”

Tim Zappala, a Partner of Arsenal, said “We are excited to be partnering with great leadership teams that have a long history of delivering continued innovation and sustained growth. This combination represents the next phase of growth for both businesses and is an important milestone in our strategy to build a leading color concentrate business offering customized and proprietary solutions. We look forward to continue their track records of growth through both organic initiatives, as well as building through strategic acquisitions to further expand the platform’s product and service offering.”

“Both Carolina Color and Breen are customer-centric organizations, dedicated to providing the highest levels of service and technology,” said Joe Rooney, a Principal of Arsenal. “The combination will have a number of strengths to draw upon as we create a premier platform in the color concentrate space through continued investment in growth and acquisitions.”

Stout Risius Ross Advisors acted as financial advisor to Arsenal in conjunction with the acquisition of Breen.

About Arsenal

Established in 2000, Arsenal Capital Partners is a leading private equity firm that specializes in investments in middle-market specialty industrials and healthcare companies. Since inception, Arsenal has raised institutional equity investment funds of approximately $3 billion. Arsenal invests in industry sectors in which the firm has significant prior knowledge and experience and seeks companies typically in the range of $100 – $500 million of initial enterprise value. The firm works with management teams to build strategically important companies with leading market positions, high growth, and high value-add.

https://www.arsenalcapital.com/