Beverage Industry Faces Tight Can Supply Amid Rising Demand
Canmakers are currently facing tight capacity due to positive signs in both alcoholic and non-alcoholic beverage markets. Anheuser-Busch, the world's largest brewer, experienced its first sales volume increase in three years during the first quarter, according to its earnings report. Meanwhile, Coca-Cola noted the popularity of mini cans and positive sales results during its April 28 earnings call.
Major can suppliers, including Ball, Crown Holdings, and Ardagh Metal Packaging, discussed demand trends and challenges during their recent Q1 recaps. Ball reported net sales of $3.6 billion, a 16.3% year-over-year increase, and is anticipating big opportunities with beverage customers due to events like the World Cup and the US's 250th anniversary. CEO Ron Lewis mentioned that Ball is sold out for the current year and more than 50% sold for the rest of the decade.
Ball is planning to open a new plant in Millersburg, Oregon, with startup costs expected to reach $35 million. The company is also considering a new plant on the East Coast, potentially in North Carolina. Despite increased commodity costs due to the Middle East conflict, Ball is passing these costs on to customers.
Crown Holdings reported net sales of $3.26 billion, up 12.9% year over year, with global beverage shipments increasing by 5%. CEO Tim Donahue noted that March was the highest shipment month ever for Crown. He mentioned that the aluminum beverage can market in North America is growing and expects a tight supply situation this summer. Although tariffs are considered poor policy, they are not expected to have long-term impacts on the company.
Ardagh Metal Packaging (AMP) reported a 1% decline in beverage can sales year over year, aligning with expectations. CEO Oliver Graham stated that AMP anticipates 2026 to be a transition year with a slight volume decline, expecting growth to resume in 2027. AMP reported no direct exposure to the Middle East market but is monitoring geopolitical impacts on input costs.
The beverage industry is gearing up for a strong summer, although capacity constraints and geopolitical tensions present challenges. Companies are responding with strategic adjustments and are optimistic about future growth.
