Debt crisis fails to halt the progress of cans in Europe

The latest figures released by Beverage Can Makers Europe show can fillings across the region remain in surplus for the year despite the gathering clouds of the European debt crisis. With stock markets tumbling and uncertainty gripping the region, BCME reports that use of the can in the beverage industry has increased by 4% in the year to date to September 2011. Use of the can for soft drinks is up by 6% and beer 2%.

The rate of progress has slowed in the third quarter, something that is attributable to less favourable weather conditions in many key markets during the summer and a slowdown in growth of overall regional beverage demand. The can continues to outperform the total beverage market gaining share on other packaging alternatives.

The unit rise for soft drinks is particularly strong this year, once again highlighting the healthy performance of the energy drink category where the can predominates. The upward trend is also underpinned by the popularity of the can multipack in many markets. Europeans are enjoying the single-serve format at home at the expense of the so called ‘share sizes’ found in other packaging options. It is Western Europe that is driving demand for soft drink cans; in Eastern Europe, a drop in soft drinks can fillings in Romania, Bulgaria and the Ukraine has concealed strong results in other markets and prompted a small downturn.

The 2% beer can unit increase in the first three quarters in Europe comes against a backdrop of stagnant overall beer sales in the region. Beverage research agency Canadean, anticipate beer growth of just 0.1% in Europe for the full year. The can performance comes despite a decline in demand in the region’s biggest beer can producer, the United Kingdom; beer can units in the UK have dropped in the year to date to September 2011 by nearly 6% offsetting the strong soft drink can growth. The UK accounts for more than one in every six beer cans filled in Europe, but has been hit by a very depressed beer market. The market has been effected by above inflation tax increases and the fact that cans enjoyed considerable success during the Soccer World Cup in the comparable year. Despite this, cans are expected to continue to take share from other formats in the UK beer market in 2011. Use of the can for beer in the year to September is on the up in both Western Europe (+0.8%) and Eastern Europe (+5%) but growth is weighted in favour of the East which accounts for a little more than a third of regional production. The beer market in Eastern Europe remains on an upward curve this year in spite of the deteriorating economic outlook.

With the on-going debt crisis in Europe, the current trading environment remains far from stable and this will be an influential factor in shaping refreshment patterns in the remainder of the year. The BCME results suggest that the can is well placed to ride the storm.



Source: BCME (Beverage Can Makers Europe)
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