Two of the world’s biggest aluminium beverage can producers have been forced to find new sources for aluminium over the past year due to the coronavirus pandemic and the resulting economic downturn, and they expect to continue to scramble to find aluminium resources for years.
Ball Corporation CEO John Hayes was quoted in AlCircle as saying that his firm has warned other companies that are considering using aluminium cans that their production is at maximum capacity, and that demand for aluminium cans is outpacing supply.
Meanwhile, Ball Corporation President Daniel Fisher anticipates that demand will exceed supply at least into 2023. Sales volume was up by 6 percent in the prior quarter, and 11 percent for the prior year in an effort to meet it, and it continues to bring online ever more aluminium can production capacity.
Representatives of Molson Coors say that they have worked to minimize shortages by finding new sources. The firm found new sources on four continents over the past several months, and it also put the finishing touches on its own production line capable of producing up to 750 million aluminium cans per year.
Molson Coors does not expect its shortages to last as long as those anticipated by Ball Corporation, as CEO Gavin Hattersley predicts that its shortages should end by the end of this quarter. But the firm has also seen a decline in sales volume of almost 7 percent due in part to limited aluminium can supplies and on-premises restrictions in several regions due to the coronavirus pandemic.
Molson Coors CFO Tracey Joubert says his firm acted with resolve to find new aluminium can sources over the past year.
“After the uptick of the coronavirus pandemic, we aggressively began sourcing additional aluminum cans from all over the world to support our core brands to address unprecedented off-premise demand.”