Finding a niche in the paper business
Interview with Penn Siegel, CEO, Potlatch Corp.

How did Potlatch become the largest private-label supplier of tissue in the West?

"It's been a gradual process. We began producing tissue 40 years ago with a used paper machine we bought from another mill. . . . In 1993, we bought a third machine, and upgraded the others. It allowed us to produce top-quality bathroom tissue and very good towels and napkins. . . . We introduced what had not been done before, which was premium, private-label tissue."

What has that meant for the company?

"It's a business that generates close to $300 million in annual sales. . . . If you buy private-label tissue in the West in a grocery store or drugstore, you have to try very hard to find tissue that is not Potlatch's."

What is the biggest challenge facing Potlatch's tissue operations in 2003?

"We promised our customers that we would provide a product at least equal to the leading brand. In the 1990s, the leading premium brand was Brawny Towels, but now the best product on the market is Procter & Gamble's Bounty. . . . We can't do it with our existing machine. We're adding a new machine in Las Vegas, which will be installed around the end of the year."

Back to Top