• Market for Drinks Cans - uk
• European Can Market
• Alcoholic Drinks Market
• Multipacks
• Outlook
• Soft Drinks
• New Can Sizes
• Recycling
• Consumer Attitudes

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In 2004 the sales of empty cans for carbonated soft drinks and alcoholic drinks totalled 7,782 million, an addition of 20 million over 2003. Growth was led by sales of cans for beer and cider, which grew by 144 million, an increase of 3.6% over 2003. Cans for alcoholic drinks now account for 53% of total UK can sales, compared with 49% in 2000.

Sales of cans for soft drinks totalled 3,636 million, a decrease of 3.3% on the previous year.

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In contrast the Eastern European countries saw strong growth, particularly in the Czech Republic, Slovakia, Hungary and Russia.

The quantity of cans shipped in Western Europe increased by 835 million or 4.6% to 18.9 billion in 2004. Growth in Austria was 49%, and high growth rates, on a low base, were experienced in Portugal, Finland and Turkey.

In Central and Eastern Europe the quantity of cans shipped increased by 221 million or 30% to 966 million, with strong performance in Poland and Russia.

The overall European market for cans for carbonated soft drinks grew by 5.6% in 2004 to 19.8 billion.

Overall, the volume of cans shipped in Europe for alcoholic drinks, primarily beer, increased in Western Europe by 2% (275 million) in 2004 to 14 billion. There was strong growth from a low base in Turkey and in Denmark, where the ending of the can ban, is allowing the domestic market to develop.

In Eastern Europe the volume of cans for alcohol grew by 12.2% (660 million) to six billion, with very strong growth in the Czech Republic, Slovakia and Hungary. In total the number of cans shipped across Europe in 2004 was 20.66 billion, an increase of 4.8% compared with 2003.

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The UK market for take-home alcohol grew by 3% in 2004, with a total value of £11,049 million. This chart reflects the changing pattern of drinks consumed in the home, with FAB's declining sharply in 2004 - a fall of 11% in value of sales. Light wines continue to be the major growth sector with a 7% increase in sales value, followed by champagne and sparking wine up 6%.

Take-home beer and cider - by type

Lager once again grew share of market to 73% of all takehome sales, an increase of 1% market share. Sales of cider turned around in 2004 and grew to 13%, an increase of 2% in market share, while sales of ale declined to 11% of total volume - a reduction of 3% in market share during the year.

Cans are the main pack for take-home beer, accounting for 66% of the units sold in 2004. Glass bottles are the other main pack type, with 32% share. These figures represent a 1% market share gain for cans and a commensurate loss for glass bottles, reversing the trend of recent years.

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Multipacks are the main means of selling take-home beer in UK retailers, with a trend over recent years towards the larger packs of cans and bottles. Competitive prices have driven volume sales as consumers have recognised the value that these purchases represent.

In 2004 multipacks were often used to meet price points and sales of 18 packs of cans grew fast as did 15 packs of cans and 15 and 20 packs of bottles. Indeed, sales of these can pack configurations led to a fall of 7% in the number of bottle 24 packs sold in 2004.

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The strong performance of drinks cans in take home beer in 2004 has continued into 2005 with cans gaining market share from glass bottles - perhaps a reflection of consumers noting the great value that cans of beer provide.

The Can Makers have introduced three new slim size cans into the market place this year. The cans provide brand owners with a wider choice of cans, both in terms of volume but also can diameter and will also afford opportunities to create distinctive packs on the retail shelf. The range of sizes combined with promotional mechanisms and innovative finishes continue to make cans a powerful marketing tool for drinks.

The prospects for 2005 are good, with the hot summer weather helping to fuel demand for both carbonated soft drinks and take home beer and cider.

The challenge to the Can Makers remains to increase can recycling rates to meet the recovery targets in 2008, set by government. Both the aluminium and steel industries are currently working hard to help achieve these goals. The infinite recyclability of cans means that it is a practical proposition to recycle every drinks can sold and combined with the infrastructure already in place the targets should be achievable.

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Following on from the ”good summer” in 2003 the total volume of soft drinks sold in 2005 declined by 3.6% over the previous year according to research from AC Nielsen.

Within the overall soft drinks market there were also changes. Water, fresh fruit juice, fruit drinks, energy and health drinks all grew share of market, primarily at the expense of carbonated soft drinks which lost 4.6% share of volume sold. This change has every indication of being a structural one, in response to concerns about health, sugar content and childhood obesity and is part of a similar trend in other countries.

Consumers have a choice of different packs and research confirms that they buy different packs for different drinking occasions, from drinking on the move to relaxing at home.

In 2004 cans accounted for circa 18% of the carbonated soft drinks volume and 46% of the packaging units purchased - source AC Nielsen.

Sales of multipacks of cans continue to grow in multiple grocery outlets, as single cans decline in importance. Within this sector, six packs have grown share, with a decline in 12 packs and growth in 24’s.

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2005 has seen the introduction of several new can sizes into the market place. All are variations of slim cans, compared with the widely used 33cl and 44/50cl cans.

The 284ml (half pint) can in the existing slim line configuration, has been introduced for Stella Artois. Sold in an innovative fridge pack, it opens up new drinking opportunities for consumers who want a smaller measure of beer.

The other new sizes feature a new body diameter of 58mm in 300ml and 330ml capacity, resulting in a taller can than the standard 330ml size. These have been introduced initially by Coca Cola and Kronenbourg in France.

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UK legislation regulating drinks can recycling has its origin in a European Union Directive governing recovery and recycling of packaging waste, first introduced in the early 1990’s.

Regulatory pressures vary across Europe, as do the approaches to implementation. The German government has imposed on consumers and industry a highly contentious deposit system for single trip beverage containers. Outside Germany this policy is widely considered to be costly, inefficient and with questionable environmental benefits. The European Court of Justice has ruled that it introduces barriers to free trade and the EU Commission has notified the German government that it is infringing EU rules. With a supportive consensus across all German political parties, it remains to be seen whether Germany will accept external criticism.

Uniquely the UK has adopted a market system with competition built in at every stage, which keeps costs relatively low. As with all national schemes its main objectives are threefold:

• to see packaging and packaging waste minimised as far as possible,

• to encourage more reuse of packaging items

• to work to increasing targets for recovery and in particular, recycling of packaging materials over the next few years.

Whilst recycling rates have grown consistently over the last twenty years there is still room to increase the average rate and therefore targets have been revised over time. UK businesses are currently working towards a 2008 deadline for overall recovery of metals of 50% and within this aluminium at 35.5% and steel at 61.5%. This differential relates to the relative quantities of each metal in the waste stream.

As part of achieving these targets drinks cans have an extremely positive role to play and a number of inherent advantages.

Both steel and aluminium are abundant and easily available resources, yet recycling of these metals and schemes for drinks can recovery are both longestablished activities. This has been driven by market forces, in particular the value of scrap metals, and their relative ease of recovery and recycling.

A study undertaken this year examining the economic implications of local authority kerbside collection schemes revealed significant benefits in including metal cans – both steel and aluminium – which subsidise the cost of collection and sorting of other materials.

Both aluminium and steel are infinitely recyclable, without loss of their essential properties, leading to the possibility that the metal in a drinks can used today could once have been used in Queen Victoria’s fork.

In addition there is a ready market for used cans and capacity is in place to recycle every drinks can sold – steel and aluminium – once they have been recovered from the waste stream.

Progress is being made towards these targets. In the UK the levels of recycling achieved in 2004 were 45.9% for steel packaging and 23.4% for aluminium packaging.

Both the steel and aluminium industries continue to work together towards the recycling targets they have been set. See www.alupro.org.uk and www.scrib.org for details of the recycling opportunities available for drinks cans.

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Drinks in cans are part of everyday life for the 66% of UK consumers who buy carbonated soft drinks and the 48% who buy packaged beer. Indeed as a nation we use around 8 billion cans a year for soft drinks and beer which equates to 22 million cans every day.

Independent research conducted for the Can Makers in November 2004, shows that the choice of pack for both soft drinks and beer does not appear to be linked to gender, age or socio-economic group. Some of the reasons behind consumers’ purchases of drinks cans are set out here.

The overall strengths which consumers identify with cans are:

• Drink feels cold and stays fresh
• More volume in a can
• Unbreakable/safe
• Easy to dispose of/crushable
• Value for money
• Easy to open
• Easy to store and stack

Consumers regard cans as good packs for drinks for themselves and for family and friends.

“I buy beer in cans for myself and for friends...it’s a hospitable thing.” - male aged 18-25

The convenience of cans applies to shopping trips to the supermarket where people buy bulk packs.

“It’s just part of my shopping trip.” - female aged 36-55

Cold drinks are important to consumers and whilst they will chill cans bought from the supermarket in the fridge, they also want the convenience of cold drinks from the corner shop or off licence.

“The drinks feel more chilled in a can.” - male aged 36-55

The quality of the drinking experience and whether the drink is chilled and fresh, is an area where the can receives favourable mentions by all groups. It is also regarded as a convenient means of quenching thirst.

“If I want a quick drink then I’ll grab a can.” - male aged 18-25

Value for money is also seen as an advantage for drinks in cans.

“There’s often a good deal on 4-pack cans.” - female aged 36-55

The size of drinks cans is something mentioned by people buying beer and soft drinks, in terms of convenience and enjoyment of their drink. Comments from beer drinkers included;

“A can is perfect... it won’t go flat and get warm.” - male aged 18-25

Likewise for carbonated soft drinks.

“The can is a handy size... it fits in a pocket and isn’t heavy.” - female 36-55

Many consumers mentioned storage, particularly with multi-packs, ease of opening, and even safety when listing the factors which make the can a convenient pack for soft drinks and beer.

“I think they store a bit better... I feel safer stacking them on top of each other... I worry about smashing bottles.” - female aged 26-35

Finally when looking forward, most consumers spontaneously mentioned a long list of products they would like to see more of in cans. These included fresh fruit juice, milkshakes, coffee, and sparkling water and, providing the proportions were ‘correct’, premixed spirits.

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