METALS FOR PACKAGING NEWSLETTER

VOLUME 9, ISSUE 5

March 2004.

Page 1/3

Britvic to Float.

It has been announced that agreement has been reached between the partners owning the Britvic soft drink brand in UK to float the company. The major partner, Intercontinental Hotels, with a 47.5% holding has indicated that the float will be shortly after 1^st January 2005, and not later than end 2008. It has indicated that the value will be between £800m and £1bn, with sales last year of £674m, and operating profits up 22% to £83m. The other partners are Allied Domeq and Whitbreads, who own 23.75% each and Pepsi who owns 5%. Pepsi now has a 15 year bottling contract with Britvic, and has always resisted floatation, fearing the loss of the bottling contract. Given the highly competitive market for CSD it remains to be seen how long Britvic will be able to remain independent.

Alcan Mill Sell Off Still Pending.

Although silence has descended on the progress of Alcan’s sale of either its Neuf Brisach mill or share in the Norf mill, rumours abound. The latest story is that Rusal, the mill operator at Samara in Russia, is interested in the Norf operation. This may not be too fanciful, given that Alcoa were reported to be discussing co-operation with Rusal recently. Anyway, it’s a good story! Incidentally, Rusal are being criticised for lack of financial transparency. Apparently the banks are not happy with some information being leaked from Rusal.

US Production of Beverage Cans Falls, Again.

US beverage can sales for 2003 fell below the 100bn level, with beer can sales at 31,370bn and CSD cans at 68,026bn. While CDS sales were only marginally lower, beer can sales continue the fall seen over the last few years. These figures reflect the plant closures which have been taking place in the last few years, most recently Rexam’s closure of an end making plant.

This is reflected in the US canstock shipments, which were 1.5% down compared with 2002 at 1,750,000 tonnes for North America and 230,000 tonnes of exports, making a total of 1,980,000 tonnes. Total end stock sales showed a similar pattern with a total of 890,000 tonnes shipped. Exports of both products fell by 16%, which is surprising given the devaluation of the US Dollar.

Who Should Pay for Recycling?

Etc………………..

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