Dive Brief:
- Production of aluminum sheets, used to create aluminum cans, has slowed due to the breakdown of "a key piece of machinery" at the largest aluminum rolling mill in North America.
- Novelis Inc., which partially owns the mill, sells aluminum sheets to two of the largest beverage can suppliers in the U.S., whose customers include Coca-Cola and MillerCoors.
- According to Fiona Bell, a spokeswoman for Novelis, the company is "not prepared to quantify" how much of an impact this slowdown might have on the North American beverage can market.
Dive Insight:
It's unclear if an aluminum-rolling slowdown will impede the production of large companies like Coca-Cola and MillerCoors, as Novelis has moved some production to another plant and started to import aluminum sheets as well. While Coca-Cola was not available for comment, a spokesman for MillerCoors says the company is aware of the slowdown but is not concerned about any negative impact on its own operations.
According to a September report by MarketsandMarkets, the food and beverage metal cans industry is predicted to be worth $49.2 billion by 2019. In October, The Global Beverage Can Market Report: 2014 Edition echoed the promise of growth in this industry, noting that emerging markets were a key driver.
