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Beverage Cans introduction

Rexam is a global leader in beverage cans. The beverage can industry is well consolidated and has high barriers to entry. There are three global players.

Our Beverage Cans business is essentially a regional business operating on a global scale. In general, our plants are located close to our customers to minimise logistics costs. Our main operations are in Europe, North America and South America. Our market shares in these regions are 46%, 23% and 58% respectively. We also have plants in China and India and joint ventures in Guatemala and South Korea.

Beverage cans are made from aluminium or steel. They are a popular form of beverage packaging throughout the world. They are the most lightweight, high performance beverage packaging container available today and uniquely sustainable being 100% recyclable and the metal 100% reusable. They are, in fact, the most recycled type of beverage packaging in the world. We are confident of their future in an increasingly environmentally conscious world.

In addition to their environmental credentials, consumers appreciate their lightness, the ease of refrigeration and the fact that they keep contents fresh and carbonated. Beverage producers like cans because they are quick to fill, maintain product integrity and are easy and efficient to transport. They are effective in moving volume (especially in multi pack formats) and their smooth metallic surfaces provide optimum exposure for a brand. For retailers, cans are simple to handle and, as they are easily stackable, make effective use of space on supermarket shelves.

Our cans are used for a wide array of beverages including beer, carbonated soft drinks, sports and energy drinks, iced tea and spirit mixers. Emerging categories such as juice, water, iced coffee, functional drinks and wine are using the can to enter and open up new markets.

The beverage can’s share of the global carbonated soft drink pack mix is 20% by volume and 41% by unit. There was no change compared with 2008. In beer, the shares are 22% and 31% respectively (2008: 22% and 30%). The slight increase in can share in beer is attributable to the continued shift from refillable and non refillable glass.

Beverage can tops

Beverage Cans represents 74% of ongoing Group sales and 70% of Group underlying operating profit (2008: 72% and 66% respectively).