Graphic Packaging International, Inc., a subsidiary of Graphic Packaging Holding Company, today announced price increases for its coated unbleached kraft (CUK) grades to cover higher costs for mill inputs, including fiber, energy and chemicals. The Company also announced that it would set new freight allowances.

Graphic Packaging will increase the price of its Pearl-Kote(R) and Omni-Kote(R) coated unbleached kraft paperboard used for food packaging, and Aqua-Kote(R) paperboard used for beverage carriers, by $40 per ton, effective with shipments on or after August 1, 2008.

"Given the rapidly rising price of crude oil and resulting higher costs for key manufacturing inputs like fiber, energy and chemicals, we are responding quickly to offset the imbalance with various actions, including price increases for paperboard," said David W. Scheible, President and Chief Executive Officer.

"Additionally, the rapid escalation of transportation lane and fuel surcharge rates makes it necessary for the Company to implement new freight allowances. Historically, paper manufacturers have borne the full amount of  freight to their customers.  Today's market dynamics require us to change this approach to remain competitive and to continue to deliver high-quality, innovative packaging to our customers, while also providing positive returns for our shareholders," Scheible said.