Leading sustainable aluminum solutions provider, Novelis Inc., has recently announced the signing of a new long-term contract with Coca-Cola Bottlers’ Sales & Services Company, which is the contracting agent for The Coca-Cola Company’s authorized North American bottlers (“CCBSS”).
Under the agreement, Novelis is set to deliver Coca-Cola’s authorized North American bottlers with aluminum can sheet for The Coca-Cola Company’s family of iconic brands. This would include supply from Novelis’ plant in Bay Minette, Ala., which is currently under construction and expected to start commissioning in 2025. Under the agreement, The Coca-Cola North American bottlers, through the CCBSS and Novelis agreement, have committed to purchasing a confidential volume of aluminum can sheet over a multi-year period.
“This new long-term contract builds on a decades-long relationship between Novelis and the Coca-Cola system, and further strengthens Novelis’ position as the leading provider of aluminum for beverage cans,” stated Steve Fisher, President and CEO of Novelis. “This contract validates our investment in expanding rolling and recycling capacity in North America and solidifies a strong future for sustainable aluminum as the beverage packaging material of choice.”
Under the contract an agreement for closed-loop recycling has been included, highlighting committments of both the companies’ towards sustainability. Through closed-loop recycling programs, Novelis directly takes back the manufacturing scrap generated during the can making process, recycles it and converts it into new can sheet, which is then made into new beverage cans. In addition to this continuous loop, Novelis has recycled over 80 billion used beverage cans every year into new aluminum for beverage packaging. These efforts result in lower-carbon products, as recycling aluminum is approximately 95% less energy intensive than making primary aluminum, which results in 95% less carbon emissions.
Novelis anticipates that the demand for aluminum beverage can sheet can grow at a CAGR of 3% from 2022 to 2031. The demand growth is driven by consumer preference for more sustainable products and size variety, including more beverage types being packed in cans, including water, energy drinks, soda, beer, wine, hard seltzers and ready-to-drink cocktails.
Dan Coe, Chief Procurement Officer of The Coca-Cola Company, stated – “the evolving role on behalf of The Coca-Cola Company and our Bottlers is to build a resilient domestic supply chain, thus enabling sustainable long-term growth. We recognize Novelis as a leader in sustainability, committed to supporting our 2030 World Without Waste Targets.”
Demonstrating the strength of the aluminum beverage packaging market, the majority of the Bay Minette plant’s capacity for beverage can is already contracted.