European can production shows resilience in 2012

Figures compiled by Canadean for BCME have revealed the resilience of the can as production levels for beverage cans across Europe rise despite difficult marketing conditions.

The new figures show that there were more than 59 billion cans for soft drinks and beer produced in Europe during 2012, reflecting how soft drinks producers and brewers recognise the convenience and endless recyclability of the can.

A 3.7% increase on the previous years’ production rate equates to the manufacture of an impressive two billion extra cans, and comes despite the fact there has been an almost 1% drop in beer consumption across Europe.

The upward shift in can production was driven by strong performances in Eastern Europe, where can fillings grew 5.7%, and the Nordic region which grew by 4.6%. The 3.2% growth seen in Western Europe was well above GDP growth in the region, and this success was followed by 3.4% growth in the production of cans for soft drinks across Europe as a whole.

Overall fillings for cans for beer increased by 4% despite the fall in consumption, pointing to a noticeable long-term shift emerging in the beer market away from refillable glass bottles to cans. The economic challenges have resulted in people choosing to stay away from bars and instead purchase packaged beers from supermarkets to enjoy a night at home instead, and brewers are responding to this change.

The resilience of the beverage can, the ease of filling and its excellent recycling credentials all combine to ensure the can remains a popular choice of packaging for beer, soft drinks and energy cans.

Calling all Student Scorsese Wannabes

The Can Makers have launched a nationwide search for the best video dispelling the myths around recycling drinks cans.  “Myth Busting – what happens to your drinks can when it’s recycled”,  jointly sponsored by the British Film Institute asks students to enter short videos exploring the myths of drinks can recycling, particularly what happens to our recycling, which is often misunderstood.  Entrants will have a chance to win £1,500 and be recognised nationally as a leading student filmmaker.

The celebrated British actor Danny Dyer leads a host of celebrities and experts from the environment, sustainability and film making industries who will be judging the entries.  The full list includes Danny Dyer, Actor; Craig Stevens, Sky Movies Presenter; Geoffrey Macnab, The Independent Film Critic; Jamie Crawford, Presenter and Environmental Filmmaker; Jennifer Granville, Director of Northern Film School, Leeds Metropolitan University; Dr Colin Church, DEFRA; and Noel Goodwin, BFI Education Programmer for Young People.

Entrants will need to submit a video, no more than two minutes in length, which busts some of the popular drinks can recycling myths.  Whether it’s an animation, a funny stunt or a short documentary, the winning student will be rewarded the top prize of £1,500.  The winner of each of the five sub-categories will win £500.

The closing date for entries is Thursday 28^th February 2013.
Full terms and conditions and information on how to enter are available on Facebook: http://www.facebook.com/CanMakersVideo.

The evolution of the drinks can: changing the consumer’s can

Since the drinks can’s introduction in the 1930s, society has continually changed and evolved but through it all, the drinks can has remained a popular drinks pack. This is the first of two blogs that explore how drinks cans have changed with society.

 

It was the 1930s that the drinks can came about. The world was much smaller thanks to intercontinental flights and the start of air mail. Good ideas and inventions could then spread across the globe at a faster pace. Canned beer was first developed in 1930 in the US. Easier communication of ideas meant that technology evolved in the UK and it was introduced in 1935.  The first cans were constructed from three pieces of metal with a cone-shaped top, looked like bottles and had a screw cap.

The period between the thirties and sixties was one of war, upheaval, rebuild, austerity and rigidity. In the sixties, views began to relax as did licensing laws. Alcohol became more widely available in supermarkets, for which cans were perfectly suited. Light and durable, cans also required minimal shelf space.

More changes in social attitudes and desires in the seventies saw supermarkets increase product variety and choice, so less shelf space was available. This was ideal for cans which, thanks to the new two-piece construction, could be stacked and easily displayed. Multipacks were also increasingly popular and the introduction of ring-pulls did away with keys, adding another level of convenience and saw a marked increase in canned drink sales.

The eighties – an extremely difficult economic period at the start finished with boom and economic growth. Manufacturing improvements and efficiency were vital and the can underwent lightweighting and continual innovation.  By 1981, two-piece cans led the UK market. In the second half of the decade, times had changed as had consumers’ lifestyles and the can remained popular – still drinks in cans were introduced, the retained ring-pull was developed and a lighter can with a more cost-effective way of production was in place.

Our next blog will explore the nineties, the “naughties” and present day.

UK drinks cans shipments increase by 2% in first half 2012

UK can market shipments grew by almost 2% in the first half of 2012, as reported by The Can Makers. In total, 4,699 million cans were shipped, a considerable achievement given the challenging economic climate and poor early summer weather.

Shipments of beer and cider cans were up in January to June 2012 by 2.4%, an increase of 51 million, with 2,159 million cans shipped in total. Growth was due, in part, to demand being stimulated by the Queen’s Jubilee and the 2012 UEFA European Football Championship in the summer, as well as anticipation of the Olympics.

Data from Nielsen shows that there has been significant growth in 10 packs at the expense of 6, 8 and 12 packs – no doubt due to marketing initiatives. There has also been substantial growth in 18 and 24 packs, due again to a summer of sport and consumers buying larger packs for gatherings of family and friends.

Empty can shipments for carbonated soft drinks also saw growth of 1.5% in January to June 2012, with 37 million more units shipped in 2012 than 2011. In total, 2,540 million cans for soft drinks were shipped in the first half of 2012.

According to Nielsen, 500ml cans are still seeing the strongest growth, largely driven by the energy drinks category. Single cans continue to increase share of all canned sales, due to the growing need for consumer convenience and low unit purchase price. 6 and 8 multipacks now have the biggest share of the category, with these packs offering value for money and a lower unit price.

The European Can Market Report 2011 has arrived

2011 was another positive one for the beverage can market, which enjoyed yet another year of growth in Europe. Drinks cans continue to be a popular choice for fillers and consumers alike. The annual BCME European Can Market Report details European trends, market performance, consumer behaviour, recycling activity and much more.

For fillers, the can offers a 360 degree billboard for brand promotion in addition to recyclability and on-the-go convenience. For consumers, the can offers a drinks pack which keeps its contents fresh whilst remaining cool and trendy. The drinks can continues to go from strength to strength, not only with its innovative shapes, the variety of sizes and finishes available, but also with expanding offerings available including ready mixed drinks and wine.

In Europe, BCME has been working with Metal Packaging Europe to highlight metal as a permanent material that is infinitely recyclable and reusable – a fact now recognised by the European Parliament, which has endorsed the European Commission’s Resource Efficiency Roadmap, specifically calling for ‘permanent materials’ such as metal to be made a new resource category. Within the report you will also find details of BCME’s commitment to sustainability through our continued support of recycling campaigns. We have been working hard to communicate best practice on every aspect of can handling.

With a whole host of sporting events across Europe, we hope that the beverage can continues to perform well in 2012. For more information about BCME and to read the report in full, visit http://www.bcme.org/home

A look back at the Soft Drinks International Conference

The Soft Drinks International Conference, held at the Tower Hotel, London, saw delegates from all over the world come together to discuss the soft drinks industry. Topics ranged from packaging and innovation, to consumer behaviour and sustainability. Representatives included Geoff Courtney, Chairman of the UK Can Makers, and Every Can Counts and MetalMatters Director, Rick Hindley as well as UK and international representatives from Coca Cola Enterprises, Euromonitor, Canadean and UNESDA (Union of European Soft Drinks Associations) to name but a few.

Representing the UK Can Makers, Geoff Courtney’s presentation was a dynamic look at the beverage can covering three main themes: Evolution, Innovation and Sustainability. Used for soft drinks since the 1950s, the can has undergone continual evolution, keeping up with changing needs and holding its own as a consumer pack of choice for soft drinks. Of particular note are continual lightweighting, the expansive range of appearances, shapes, sizes and formats available and the fresh tasting, cold beverage that the humble can provides. Geoff also discussed sustainability initiatives supported by the Can Makers such as Every Can Counts and MetalMatters programmes.

Overall, the conference was very informative, well attended and a great success and we would like to thank the organisers from Soft Drinks International magazine for a most enjoyable and enlightening conference.

Why consumers prefer drinks cans

Why are drinks cans so popular with consumers in the UK? BCME and the UK Can Makers commissioned a recent study with GfK examining attitudes and perception to drinks packaging, which was a follow up study to one conducted in 2007. The survey highlighted the growing popularity of the can and the reasons why it is a preferred pack format amongst consumers.

The research revealed that 60% of respondents consume at least one canned drink per week –a considerable increase on 48% in 2007. The top three things consumers wanted from drinks packaging were taste, freshness and value for money. When it comes to perception, consumers agree that drinks from cans taste good. The research also shows cans are perceived as delivering “good value for money” and “freshness”, as well as a “recyclable pack” that is “easy to drink from”.

All demographics are drinking from cans more often, particularly men and those aged between 14 and 17 years old. More people than ever before are also drinking cans on the move and are conscious of convenience when making a purchase. There has been a marked increase of those drinking cans of energy drinks and single serve CSDs – also reflected in a previous blog about the UK and European can market results from 2011.

It’s clear from the research that beverage cans remain a pack of choice for consumers. They provide consumers with a convenient container which is cost effective and recyclable – key drivers when consumers come to make their purchasing decision

 *Research was conducted by GfK, a leading global market research and consumer insight agency, and is a follow up study to one conducted in 2007. The sample was demographically representative of 14-54 year olds who drank carbonated soft drinks (CSDs), energy, sports drinks and beer (aged 18 and over)

Why should we bother to recycle in the UK?

Facilities exist to recycle all of the nearly 9.5bn beverage cans consumed in the UK. However, though the drinks can recycling rate in the UK has come on leaps and bounds with over half of all cans consumed being recycled, there is more to be done. Metal is infinitely recyclable.  In fact, a drinks can could be back on the shelf as a brand new one in as little as 6 weeks,  resulting in up to 95% less energy consumption than it takes to make one from virgin material. This means a significant reduction in CO² emissions and a substantial cost saving to be made.

The government has announced that recycling targets for all aluminium and steel packaging for 2013-2017 will increase by 3% and 1% per year, respectively, from 2013. The current rates for 2012 are 40% for aluminium and 71% for steel. Whilst there is a lot of debate surrounding these targets, one thing is clear, recycling is hugely important.

If every can in the UK was recycled, around 1,080,387 tonnes of CO² emissions could be saved and more than 144,000 tonnes of steel and aluminium could be diverted from landfill*, all of which could go into making brand new products from metal – not just new cans. Aside from the environmental benefits of recycling, metal is the most valuable commodity that can be saved from the waste stream. Metal that is collected through recycling programmes can be sold on and there is strong evidence that some recycling programmes can pay for themselves and even generate a profit if they are run effectively.

Everyone has a significant part to play to make sure metal stays in the recycling loop, and it doesn’t matter if you are part of a big corporation, small business or an individual. If everyone tries to recycle the cans they use, there will be significant benefits to the environment as well as financial benefits.

*Figures based on calculations verified by WRAP

Can production shines through economic gloom

Despite a challenging economic climate across Europe in 2011, figures were encouraging for the beverage can. Full year results show an increase of can shipments of up to 5% across Europe, outperforming the overall beer and soft drinks market growth, forecast at just 2% by beverage research agency Canadean.

Canned soft drinks performed particularly well, with a 7% jump on last year’s overall figures. In the Netherlands, figures showed growth of up to 20%, while in Europe’s biggest soft drinks can market, the UK, growth was up by 5.6%, with 273 million additional units shipped compared with 2010. Within the carbonated soft drinks category, energy drinks have had a big impact, with buoyant unit rises in Austria, Switzerland, the Netherlands, Poland and Hungary. Though the success of energy drinks is an important driver, progress is also being driven by both consumers and producers alike.

The canned beer and cider market showed growth, overall, with a rise of between 3% and 4% in 2011 across Europe. West Europe saw an increase in beer cans shipped of 2%, but East Europe empty can shipments had an impressive rise of 7%, amplifying the overall results. In the UK, there was a slight drop in demand due, in part, to the lack of stimulus from sporting events, such as the World Cup, and the effects of the economic situation on overall beer and cider sales. However, despite this, according to Nielsen, retail sales of lager in cans have still performed better than other pack formats in the category, with the 12 multipack format seeing strong sales. Nielsen retail audits also showed that there was growth in the UK for retail sales of single cans and cans smaller than 44cl, with increases of 6% and 13%, respectively.

The beverage can market results for 2011 are strong and show that the can is still a preferred pack of choice for consumers and retailers.

 

Guest Q&A with Janelle Orozco, Diageo – Ready to Drink beverages in cans

Ready to Drink beverages in cans (RTDs) are now a familiar and popular offering on supermarket shelves. We spoke to Janelle Orozco, Vice President of Procurement at Diageo to find out more about the growing popularity of RTDs in cans and how they are engaging with consumers.

We first noticed RTDs in cans a little while ago, but the range is expanding. Can you tell us when Diageo started putting RTDs in cans and what the first one was? 

We began putting RTDs in cans in 1993 with the first variants being Gordon’s & Tonic and Pimm’s for the GB market.  Starting in 2008 we began expanding the range to include new brands, new mixes and new markets.  Various parts of the range are now available in 13 countries in Europe.

Why is Diageo using cans for its RTD range?

Cans are a great format from many perspectives:

• They  provide a format consumers are very used to.  Cans are also highly convenient for a multitude of occasions, whether consumers want to relax and unwind at home, or when requiring outdoor consumption in BBQ´s, parties, etc
• They are easy to store in a fridge
• They get very cold and preserve that temperature very well
• They offer a big surface on which we can deploy branding and consumer messagesThe improvements in printing quality that have been made over the years help to convey premiumness

Why do consumers like them?

We believe the main reason that consumers like pre-mixed drinks in cans is quality, convenience and choice.  Through pre-mix, we offer consumers the possibility to consume their favourite drinks perfectly mixed.  Cans are a highly convenient format since they are easy to carry, easy to store and cool quickly.  Additionally, in the case of informal get-togethers and parties, pre-mix cans offer the possibility to treat every person with their own choice of drinks without having to buy a multitude of spirits and mixers.

The RTD offering has expanded. Could you tell us how many RTDs you offer in cans and which ones are proving the most popular? Is there a particular reason for this?
Our current range has 16 variants spanning great brands like Gordon’s Gin, Smirnoff, Captain Morgan and Pimm’s.  The most popular variants are Gordon´s & Tonic and Capt Morgan and Cola. These are two very popular drink combinations, and that is reflected in the success of the pre-mixed variant.

We’ve seen lots of advertising recently on TV for YesYouCan and the Facebook campaign has had more than 25,000 likes, which is impressive.

Can you tell us a little bit about the campaign and what its aims are?
We wanted to show consumers the effortless style associated with pre-mix cans. We wanted to inspire consumers and show them they could enjoy their favourite spirit and mixer any time anywhere.

Are there any times of year when you see sales of RTDs in cans higher than others? Do you know why this is?

There is normally a peak around Christmas and then in late Spring/early Summer. This is consistent with peaks in spirits consumption and with times of the year when informal get togethers happen more frequently.

To find out more about Diageo visit www.diageo.com/ or join their YesYouCan Facebook page