Coca-Cola follows suit and announces shift from plastic to aluminum, reinforcing the Aluminum Can Revolution 2.0

Coca-Cola announces moving its Dasani water to aluminum packaging. In a news release today, Coca-Cola announced putting its Dasani brand of water into aluminum packaging as part of a pipeline of sustainable packaging innovations. The new aluminum cans will launch locally in the Northeastern part of the US next month and expand to other regions in 2020. The new aluminum bottle will become available in mid-2020.

HARBOR coined the term “Aluminum Can Revolution 2.0” based on the forecast of growing demand for aluminum cans and aluminum cansheet in the wake of the environmental challenges of plastic waste. Decades ago, during the late 1970’s to the mid 1990’s, aluminum cansheet demand growth was robust from material substitution from steel to aluminum; what HARBOR has called the “Aluminum Can Revolution 1.0”. During the late 1990’s to as recent as a year ago, there was essentially no structural growth in aluminum cansheet demand. Now, boosted by material substitution from plastic to aluminum, the industry is entering a period of growth; the “Aluminun Can Revolution 2.0”.

PepsiCo announced a similar shift from plastic to aluminum in late June. PepsiCoannounced that it would no longer package bubly (sparkling water beverage) in plastic and will begin offering its branded water, AQUAFINA, in aluminum cans to US food service outlets (sporting events, restaurants) with plans to test the move to aluminum in the retail market. These changes will go into effect in 2020.

Additionally, both Coca-Cola and PepsiCo have stepped away from a plastics lobbying group. Coca-Cola and PepsiCo have stopped participation with the Plastics Industry Association, whereby they believe participation in such an association could taint their images as companies working to find solutions to plastics pollution.

US domestic rolling mills with capability to produce aluminum cansheet are poised to gain as they are able to switch product mix, utilize scrap at historically low prices, and meet the increased demand.

Copyright: This report and its content is confidential, proprietary, in some cases trademarked and/or copyrighted, and constitute trade secret(s) material of HARBOR Aluminum Intelligence Unit, LLC, there use is for authorized subscribers only. No portion of this report may be photocopied, reproduced, retransmitted, distributed or otherwise redistributed electronically, in print or verbally without prior written authorization from HARBOR Aluminum Intelligence Unit, LLC.

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