State of the Glass Container Industry

Transcription

1 State of the Glass Container Industry Steve Rhea November 5, 2013 Glass is ENDLESSLY Recyclable

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3 2013 Headlines Another Year of Change The Ardagh Group announces the intent to purchase Saint-Gobain Containers. Economy continues to struggle U.S. and world-wide Unfilled glass container imports continue to increase Regulatory issues continue U.S. Glass Container Industry continues to improve safety, service, quality, the manufacturing process, flexibility and innovation.

4 Agenda How Do We Manage in Today s Environment? The U.S. Economy U.S. Packaging Market U.S. Glass Container Marketplace The Role of GPI 4

5 5 U.S. Economy

6 Dow Jones Industrial Index 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,

7 Thousands of Starts U.S. Housing Starts

8 Thousands of Vehicles U.S. Vehicle Sales - Cars and Light Trucks 2,000 1,800 1,600 1,400 1,200 1,

9 Index 1985=100 Conference Board Consumer Confidence Index

10 Index 1966=100 Reuters/University of Michigan Consumer Sentiment Index

11 U.S. Employment Totals and Unemployment Rate 000 Employees Percent Unemployed 160, , , , , , , , Employed Individuals Unemployment Rate 11 Note: Employment and Rate for those 16 years and older

12 Gross Domestic Product (GDP) (Value of Goods and Services Produced in an Economy) Percent Change % %? 12 Source: U.S. Census Bureau

13 Agenda How Do We Manage in Today s Environment? The U.S. Economy U.S. Packaging Market U.S. Glass Container Marketplace The Role of GPI 13

14 U.S. Packaging Container Industry 2013 Overview - Domestic and Imported Food and Beverage Packaging Paper/BIB /Flexible 11% Paper/BIB /Flexible 35% Glass 10% Plastic 18% Metal 13% Glass 58% Plastic 25% Metal 30% Volumes by Weight 21.5 mil Mtons Volumes by Units 450 billion units Source: DOC, MINIMAX U.S. Based Manufacturers, EUROMONITOR 14

15 Agenda How Do We Manage in Today s Environment? The U.S. Economy U.S. Packaging Market U.S. Glass Container Marketplace The Role of GPI 15

16 U.S. Glass Container Industry 2013 Overview Gross Tons Source: Dept of Commerce, MINIMAX assumes 93% reporting 16

17 (000 Gross) U.S. Glass Container Industry Historical Volume E 400, , ,000 Conversion of carbonated soft drinks to plastic World-wide economic downturn 250, ,000 Volume slightly decreasing in , , Source: Dept of Commerce, MINIMAX assumes 93% reporting 17

18 U.S. Glass Container Industry Sales Volume Overview September 2013 Category Trend % Change (2013 v 2012) Year to Date % Change (2012 v 2011) % Change (2011 v 2010) % Change (2010 v 2009) % Change (2009 v 2008) Food -0.8% -3.7% -1.7% -1.0% -2.2% Beverage -5.5% 1.6% -2.2% -6.2% -10.0% Beer -3.5% 2.1% -1.8% -8.0% -2.3% Liquor -0.4%.9% -0.5% -0.6% -0.3% RTD Liquor -2.1% -9.3% -0.7% -10.2% -3.6% Wine -2.2% 1.0% 7.1% 7.0% -2.1% Other 23.2% 12.1% -15.1% 0.1% 7.6% Total -2.7%.5% -1.2% -5.4% -2.8% Source: Dept of Commerce, MINIMAX assumes 93% reporting 18

19 U.S. Glass Container Industry 2013 Overview Imported (Filled), 2,800,000 Imported (Unfilled), 750,000 U.S. Manufacture 7,500,000 Overall Marketplace of 300 million gross or 11.1 million metric tons Source: DOC, MINIMAX U.S. Based Manufacturers, EUROMONITOR 19

20 Imported (Filled) Glass Containers into the U.S. Food, Bev, Other 20% Spirits 13% Wine 16% Source: Beer Inst, Euromonitor Other Imported Beer 9% 2,800,000 Metric Tons Mexican Beer 28% Dutch Beer 10% Canadian Beer 4% 20

21 Agenda How Do We Manage in Today s Environment? The U.S. Economy U.S. Packaging Market U.S. Glass Container Marketplace The Role of GPI 21

22 22 The Role of the Glass Packaging Institute

23 Favorable Legislative and Regulatory Environment Clear Voice on Federal and State Legislation Workforce as Local Advocates National and State Glass Recycling Partnerships Recycled Content Rate Issues Messaging (Health, Purity, Environment) GPI Website Future Glass Industry Champions Government Affairs and Recycling Marketing and Communications GPI s Strategic Plan 23

24 We Can Design and Produce Great Products! And Recognize Our Customers! 24

25 Glass Packaging Institute 2011 Clear Choice Awards 25

26 Glass Packaging Institute 2012 Clear Choice Awards 26

27 Glass Packaging Institute 2013 Clear Choice Awards

28 Conclusion We are competing in a global marketplace with threats from alternative packaging, imported filled glass products and glass imported from Asia. We have a great story to sell : Style Purity and Safety Inert Material Recyclability Innovation Service and Flexibility There are many pending governmental and regulatory issues to resolve and we have the best people working on these. We all have and must continue to find opportunities to remain competitive. Our customers view glass as a great packaging material, but too expensive. 28

29 29 We Can Buy Our Products in Glass!!

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31 31 Questions

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