Metal speaks up

28 September 2011



Alex Jennings, vice president of sales and marketing at Rexam Beverage Can Europe & Asia, tells Joanne Hunter why the bevcan is a match for any business challenge


The business sector in which Alex Jennings works is fizzing with possibilities, both in the scope of bevcan technology and in the sheer scale of its penetration. Rexam Beverage Can produces a huge chunk of beverage can total sales: its 26 billion cans/year in Europe represents the largest market share at 45%, and it puts 60 billion cans/year into the market worldwide.

But volume growth is far from Rexam’s only concern. “Sustainable and environmental aspects are important,” says Alex. “We work continuously on reducing the energy and metal it takes to produce the cans. For example, we are using half the metal to make a can now than 25 years ago, during which time recycling rates for drink cans have doubled. This makes good business sense, and is helping to answer the environmental demands of today.”

Such virtuousness is achieved on two fronts, Alex explains. Downgauging drives resource efficiency as well as cost saving, while using recycled aluminium or steel uses up to 95% less energy than using virgin metal. “Environment ministers, NGOs, need to know this. They should encourage the use of a packaging material that is both 100% and infinitely recyclable.”

Innovation moves Rexam into fresh territory, he continues: “Implementation of new sizes allows products to be taken into a new arena.” So successful is the teaming up of energy drinks and the ‘slimcan’, they have become virtually synonymous, he states. In fact Rexam has 25 different can sizes to offer in Europe.

“The can is a growth driver at Rexam,” Alex asserts. The total bevcan market saw 5% growth in 2010, half of which has come from within the market, thanks to greater consumption, while the other half is owed to a pack-mix change.

Alex further observes that innovations are mostly coming from the wine and functional drinks categories. The reason they are turning to metal, he explains, is due to “the can’s superior qualities and shelf life over alternative packaging materials. For example, beverage cans protect the contents from the damaging effects of light, a claim that PET and glass cannot make.”

But what about reclosable cans: is Rexam making inroads there? “Recloseable cans has a niche, for example in our aluminium Fusion bottles. The bottle has been a great success and a global award winner. We are seeking to make it more mainstream by implementing extensive technology over the next five years.”

Brands love the idea of on-shelf differentiation through shaping. As such, he says: “The aluminium bottle is a great product. The ability to shape means that anybody can ‘own’ a shape.”

Carbon review

The level of carbon emissions is under constant review by Rexam. “The [carbon] footprint is a growing factor within manufacturing. Rexam believes it has a competitive footprint, and we are ensuring we continue to reduce and improve.”

The capacity to produce more cans has increased, while using smart logistics choices has reduced the total miles covered by delivery trucks. He cites ‘through the wall’ operations for Coca-Cola and Red Bull that are driving down logistics costs and the environmental impact in the UK, Spain, Denmark, Switzerland, Italy and Egypt. As the right vehicle and driver combination creates a winner on the world’s Formula One race circuits, so great teams are also found in the packaging world. “The can has a fantastic story. For brands, cans drive different options for growth. It travels well, is lighter than other products, and has inherent value, which makes sure recycling systems pay for themselves. In South America, recycling percentages are in the high 90s, due to families collecting cans.

However, there are challenges ahead, and not only for metal. The cost of metal will drive the need to raise prices going forward. But the same is true for the raw materials for PET and glass, which will be hit by utility price increases.

So the can will continue its growth trend, while the company with its Lean Six Sigma approach to manufacturing, “will get even better”, Alex predicts.

Career History

With Rexam for 12 years

¦ Two years ago Alex moved into his current role in sales and marketing

¦ Previously with Toyota and GE in purchasing roles

My strength: “An ability to understand both sides of the equation: purchasing and sales”


Alex Jennings Alex Jennings

Alex Jennings Alex Jennings


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