The metal packaging industry believes it has the strongest sustainability argument against other materials. Waqas Qureshi talks to industry experts about trends, materials and new products.

Elisabeth Tanguy, communications director Europe, Ball Corporation: As part of our Q3 2019, results our global beverage volumes increased 4% during the quarter. Similarly, we saw a 4% demand growth across Europe.

Bob Clarke, managing director, Fenton Packaging: It was good, sales increased by 5.6% and turnover reached £15m.

Chris Saunders, managing director, Roberts Metal Packaging: Increased marketing activity has brought in record levels of new business. However, repeat business has been quiet and, talking to customers, it seems there is a lack of confidence most likely resulting from the Brexit uncertainty.

What markets do you operate in and are you targeting any new ones?

Tanguy: We have 75 plants in North and Central America, South America, Europe, AMEA and Asia. Having 20 plants within Europe enables us to serve our customers.

Clarke: We are active in the food and beverage and industrial markets, including coatings – paint wood care and ink. We also work in lots of sub-sectors – the largest historically is industrial. But food and beverage are growing – they are just as important to us.

Saunders: We operate internationally in toiletries, haircare, skincare, aromatherapy, household, food and pharmaceutical/medical sectors – we are always looking for new opportunities.

The demand for aluminium cans has been steadily rising, with the expansion in end-use application – have you seen opportunities to boost business further with this demand?

Ana Neale, director, marketing and strategic planning, Ball Corporation: Yes, cans are outperforming the total beverage market in Europe – growing at over 2.5% (with a total market share of 11.7% in 2018). This is the fastest growth rate in all of the substrate/packaging categories. We’re seeing particular growth in new launches of beverage brands. According to Mintel data, new launches in cans represented 22% of the overall market in November 2019 – a growth of 5%. In 2019, we’ve seen a market growth in flavoured alcoholic beverages (FABs) in cans, with an impressive 14%-plus growth to reach 56% of all FABs launches in 2019.

Clarke: While we don’t sell beverage cans, we have started to sell aluminium bottles into the beverage markets, initially for flavoured gin – which is fashionable – with the intention of offering those products to other distillers and brewers. One famous example is Budweiser aluminium bottles, which replaced cans or glass bottles. We want to extend that to brewing and cider.

Saunders: We operate in extremely niche markets. We have noticed a trend from both large and small customers to consider moving some products into aluminium along with exploring re-usable packaging formats.

What’s the strategy for 2020? Capital expenditure, new staff, etc?

Clarke: Our main strategy is a combination of growth and margin improvement through cost management and price and growth of new business development.

Saunders: We do not expect to significantly increase (or decrease) staff numbers in 2020 – on-going Capex is being implemented to offset increasing minimum wage levels

How do you feel the metal packaging industry has and should respond to the coffee cups and plastic taxes debate?

Clarke: Metal packaging, whether steel, tinplate or aluminium, has good recovery and recycling; being infinitely recyclable without loss of properties is environmentally friendly. Plastic packaging and paper cups have been successful because they protect and preserve products and save food waste.

Saunders: There is a need for many different packaging materials and formats – the metal packaging industry should simply concentrate on what it is good at and continue to promote the infinite recyclability of metal. As usual, a crisis such as the current plastic waste issue sparks completely over-the top reactions from some companies (and journalists) wanting to promote plastic-free – often this is at the expense of common sense. Why not use less plastic and ensure it is disposed of/recycled responsibly? This would move planet Earth in the right direction. Hopefully EPR will simply ensure that the true cost of different packaging materials is fairly reflected so that brand owners can make a balanced choice of the packaging materials they intend to use.

Can this sector be innovative? What examples are there of strong creativity in metal packaging?

Neale: The sector is incredibly innovative, proven by the increasing number of unique design techniques that have been launched over the last year. These effects not only help to create iconic designs that stand out on shelf and amplify a brand’s messaging. They do so without impacting the can’s recyclability which sits at 74.5% today in Europe. Unlike other beverage packaging, cans offer a 360-degree canvas to host iconic designs and visual appeal right from the shelf to the moment of consumption and, due to this, there are a wide variety of ways that innovation can be brought to the format. For instance, this year at BrauBeviale, we unveiled our new Thermochromic Reveal technology, which reacts to ambient temperature changes. An update on the existing simpler, one-stage Thermochromic effect, a new two-stage process enables customers to engage consumers at purchase, when the can is cooled and at the moment of consumption. In addition, we also unveiled our Interactive Can, which uses Digimarc technology to apply a discrete code within artwork. Consumers can scan this watermark from their devices to activate online content, including marketing narratives, product information, special offers, recommendations and reviews.

Clarke: Yes, like the example of aluminium Budweiser bottles. We are looking to supply Eden Mill with a new range using aluminium bottles. Another example is Quality Street boxes – metal has better presentation.

Saunders: The metal packaging sector is innovative and has been for years. There are countless examples of this.

How much of an impact has the Brexit political upheaval and fall in Sterling had on your business?

Clarke: It’s been a complete disaster. It’s had a massive impact. At one point there was a 30% devaluation on the company; that impacted our profitability and margins. I think 98% of business was telling the government Brexit was a bad idea. But it was ignored. Almost all trade associations were anti-Brexit.

Saunders: We are a European business with European suppliers, European Customers and European staff/personnel. Brexit is hugely disruptive to any company like Roberts. However, we are strong and resourceful and will find a way through – whatever the political outcome.

What are your views on government’s plans to explore a deposit return scheme for bottles and cans?

Marcel Arsand, sustainability manager, UK and Nordics, Ball Corporation: A deposit return scheme will answer the public’s growing calls for a truly circular economy, as long as it covers a wide range of packaging materials, including PET bottles, metal cans, glass bottles, cartons and disposable cups. The returns system in the UK will also need to be well designed to give consumers the ability to hand over used containers at convenient times. Reverse vending machines (RVMs), which collect used beverage packaging, will play a role, as they do in countries like Norway where they collect 93% of returns. But in the UK, with a much larger population and more venues, we’d need as many as 45,000 RVMs – the rough equivalent to all of the existing ATMs. So, imagination and flexible thinking is required to make collection feasible and not onerous on retailers with limited space, or for time-pressed consumers. The deposit fee should reflect the size of the container, to avoid people switching to larger volumes of beverages in non-aluminium containers, as well as including a flat rate for every package. According to a 2019 study by Alupro, if a flat 20p deposit fee were introduced, 25% of current can customers would switch to larger PET bottles creating more plastics in the value chain. Most of the aluminium collected in Europe is recycled here in Europe. The average recycling rate for aluminium has reached 74.5% in Europe. Aluminium can be recycled over and over again with no loss of quality; therefore a deposit return scheme for cans would be beneficial in extending the life of the can.

Clarke: It’s not necessary if you sort out the local authority infrastructure for recovery and recycling. It’s got to be attractive enough to do it, and there has to be a high deposit rate set.

Saunders: It will not have a dramatic impact on our business. However, as metal has the highest recycling rate of all packaging materials it seems somewhat unlikely (in the case of metal) that rates will improve. It will also clash with normal kerbside council recyclate collections and so this seems like a political decision to make it look as though something is being done rather than a well-thought-through solution.

If I could change one thing about the industry it would be…

Clarke: I would like to see the perception of metal changing from being seen as ‘old fashioned’. There has been a significant move away to plastic and pouch packaging in sectors like food and pet food packaging. The food can is a great preserver of food products and does not need significant secondary packaging.

Saunders: I hope that metal packaging can grow and return to the thriving industry we had back in the 1970s and prior.

THIS MONTH’S INDUSTRY EXPERTS

Elisabeth Tanguy is communications director Europe at Ball Corporation, which has the capacity to produce 100 billion cans a year across 75 plants worldwide. Other contributors from Ball for this feature are Ana Neale, director for marketing and strategic planning and Marcel Arsand, sustainability manager – UK and Nordics.

Bob Clarke is managing director at Fenton Packaging, based in Morley, Leeds and Hemel Hempstead. Fenton Packaging is a £15m wholesaler and distributor of packaging products. It buys globally (predominantly Europe) and sells nationally. It operates in various markets – fuel and automotive oil, adhesives, sealants, food, beverages.

Chris Saunders is managing director of Roberts Metal Packaging, established in 1887, and turning over around £10m from a single site in south-east London.

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