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2007 CAN MANUFACTURERS INSTITUTE ANNUAL REPORT & CAN SHIPMENTS REPORT

2007 - Can Manufacturers Institute · 12 Food Can Marketing Committee/ Canned Food Alliance ... Bob Lanham, Anheuser Busch ... 10 Bill Barker, Rexam,

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Page 1: 2007 - Can Manufacturers Institute · 12 Food Can Marketing Committee/ Canned Food Alliance ... Bob Lanham, Anheuser Busch ... 10 Bill Barker, Rexam,

2007CAN MANUFACTURERS INSTITUTE

ANNUAL REPORT & CAN SHIPMENTS REPORT

Page 2: 2007 - Can Manufacturers Institute · 12 Food Can Marketing Committee/ Canned Food Alliance ... Bob Lanham, Anheuser Busch ... 10 Bill Barker, Rexam,

Table of Contents

2007 AnnuAl RepoRt 4 Images from 2007 6 CMI Mission & Goals 7 Letter from the President 8 Sustainability10 Government Relations Committees12 Food Can Marketing Committee/ Canned Food Alliance14 Market Data Committee16 Beverage Can Public Relations Committee/Aluminum Can Council

CAn ShipmentS RepoRt18 About This Report18 CMI Market Data Committee18 Acknowledgements18 Participants19 Definitions20 Metal Can Shipments: 2005 - 200721 Food Can Shipments: 2002–200722 General Line Can Shipments: 2002 - 200722 Beverage Can Shipments by Size: 2004 - 200722 Aluminum Can Shipments, Exports: 2006 - 200722 Aluminum Can Shipments, Imports: 2006 - 200722 Steel Can Shipments, Exports: 2006 - 200722 Steel Can Shipments, Imports: 2006 - 200723 Subscription Information

Sustainability Beverage Can public Relations Committee / Aluminum Can Council

Food Can marketing Committee/ Canned Food Alliance

Can Shipments Report168 12 18

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2007 ANNUAl REPORT & CAN SHIPMENTS REPORT CAN MANUFACTURERS INSTITUTE 3

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Images From 2007

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1 Allison Buchanan, Alcoa, and Jennifer Hoover, Ball Corporation2 Matt Witte, Silgan Containers Corporation3 Dennis Cornish, Silgan Containers Corporation, and Pat Leathers,

Gualco Group4 Harold Sohn, Ball Corporation5 William Gray, ICI Packaging Coatings, Jean Marc Germain, Novelis, Andrew

King, Novelis, and Kevin Greenawalt, Novelis

6 Don Farrington, Wise Alloys, Mike Herdman, Ball Corporation, Knox Watson, Watson Standard, Jim Lloyd, Watson Standard, Tom Welch, The Valspar Corporation, Dave Hoover, Ball Corporation

7 Russell Bennett, Darex Container Products, and Gerri Walsh, Ball Corporation

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8 Tony Bhalla, Metal Container Corporation, Mark Stafford, Metal Container Corporation, Bob Lanham, Anheuser Busch Packaging Group, Chuck Honigfort, Metal Container Corporation, Mike Harding, Anheuser Busch Packaging Group

9 Allan Copestick, Metal Container Corporation10 Bill Barker, Rexam, and William Mansfield, The Valspar Corporation11 Robert Budway, Can Manufacturers Institute, Don Nolan, The Valspar

Corporation, Kirk Norris, Anheuser Busch Packaging Group, Steve Thompson, The Aluminum Association, Leslie Van de Walle, Rexam

12 Robert Budway, Can Manufacturers Institute, Bill Barker, Rexam, Mark Stafford, Metal Container Corporation

13 Curtis Hughes, Alcoa14 Don Farrington, Wise Alloys, and Greg Wagner, PPG Industries

2007 ANNUAl REPORT & CAN SHIPMENTS REPORT CAN MANUFACTURERS INSTITUTE 5

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CMI’s dedication to these goals is evident in all that has been accomplished this year. This Annual Report provides a summary of the past year’s accomplishments, as well as a look at our strategy to fulfill these goals in the coming year.

to serve, on an as-needed basis, as a facilitation resource for the discussion and resolution of joint industry technical, operational or regulatory challenges.

to provide the industry with effective representation in Congressional and Administrative policymaking on those issues with specific impact on or important to the overall success of the can making industry.

to promote the industry with trade, local and national media and within state and local governments by publicizing overall can benefits and industry achievements.

to collect and disseminate industry statistics to provide an accurate assessment of the industry’s production and to collect and analyze consumer market information to promote the growth and economic welfare of Cmi’s members.

The Can Manufacturers Institute’s mission is to represent its members’ interests before state and federal legislative and regulatory bodies. Additionally, CMI provides members with market development programs within the parameters of anti-trust law. To fulfill these tasks in 2007, CMI strengthened its commitment to the following goals:

CMI Mission & Goals

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As an industry, we understand the can is a premiere package within the context of sustainability. As a result, our efforts over the past year have focused on positioning the can and promoting its many sustainable benefits.

Letter from the President

In 2007, CMI’s Sustainability Taskforce aligned can manufacturing data collection efforts with metal lifecycle inventories and commissioned proposals for a public relations program through which to share our story and data in meaningful and effective ways. We have opened the door to what we hope will be a long-lasting relationship with Wal-Mart, and we met several times with Beverage Can Makers Europe (BCME) to develop a global sustainability program and action plan, which so far includes synchronized aluminum lifecycle inventories and messaging goals. As the sustainability debate is greatly accelerated across the Atlantic, our friends in Europe have been incredibly helpful in preparing us for climate change debates, shifting consumer demands, and retailer and customer goals and initiatives. Thanks to their guidance, we expect to stay ahead of the curve in the U.S with proactive—and not defensive—strategies.

Sustainability messaging research programs for food and beverage cans will be complete in 2008. The Sterling Rice Group (SRG) ran concurrent studies to identify best messages for packaging stakeholders. As recycling is the cornerstone of our position regarding sustainability, we can expect beverage and food can promotional efforts to focus on the important environmental benefits of recycling, including emission

and waste reductions, energy savings, and overall carbon footprint minimization. We will deliver these messages and our sustainability story to customers, retailers, NGOs and policymakers in 2009, a year we can expect to be driven by climate change initiatives in stores, on Capitol Hill, and in consumers’ homes.

Sustainability will continue to direct the many changes we expect in the coming years: shifting consumer behavior; retailers’ environmental programs; increased customer demands, and government mandates for climate change. We will need to work hard to share our story and position ourselves against the voices of other packages who will define us. I believe we should embrace these changes as opportunities to promote the values of our package, the obvious packaging choice for sustainable living.

Best Regards,

Robert BudwayPresident

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Sustainability

CMI recognizes the growing importance of sustainability among the constituencies that matter to our industry. Fears about energy security and climate change are driving Congressional environmental policies, while retailers like Wal-Mart work to fulfill pledges to reduce their environmental impacts and require that their suppliers do the same. Advertisements now focus on green initiatives and eco-friendly solutions, and American consumers are responding with a readiness for clean, energy-efficient, safe, and affordable products. There is still, however, much confusion about what “sustainable” means. The “green noise” of advertising has made consumerism more difficult and it isn’t easly to cut through that clutter with an easy, safe and sustainable packaging message. At CMI, we believe that cans provide a true sustainable packaging option and that our recycling advantages deliver environmental, social and economic value. We are excited about sharing our story within the context of current sustainability discussions, and are working to perfect messages based on our quantified sustainability benefits.

SuRvey And liFeCyCle inventoRieSCMI member companies are providing historical data detailing the use of energy, materials, discharges, emissions and waste for all metal can types; data collection and analysis will be complete by spring 2008. CMI also continues to work with the aluminum and steel industries on lifecycle inventories (LCIs). These data sets will provide accurate numbers for retailer scorecards and the hard facts to support public relations messaging campaigns.

SuStAinABility meSSAging ReSeARCh pRogRAmThe Sterling Rice Group (SRG) has been tasked with identifying the sustainability “mindset” of various stakeholders, which will include assessing sustainability attitudes and packaging perceptions among retailers, customers, consumers, non-government organizations (NGOs) and policymakers. SRG will use this information to develop the most effective and meaningful messages for sharing our story. Messages and recommendations for implementation will be delivered in mid-2008. We expect the Aluminum Can Council and the Food Can Sustainability Group to proceed with can sustainability promotional projects.

gloBAl initiAtive/ BCmeA global sustainability initiative got underway in 2007. CMI met several times with Beverage Can Makers Europe (BCME) to synchronize LCI studies and harmonize sustainability research projects for future collaboration. Our European friends have been incredibly valuable in helping us strategize for political initiatives, shifts in consumer preferences, and retailer programs.

multi-mAteRiAl SupplieR ReCyCling gRoupThe Multi-Material Supplier Recycling Group, made up of representatives from paper, glass, plastic, steel and aluminum, met for the first time in late 2007. The group agreed that boosting recycling participation may be best served by working as an inter-industry coalition and started steps towards creating a new multi-material educational recycling curriculum for students in primary schools. The group has identified educational opportunities with federal, state, and local government officials, as well as recycling and municipal program managers. Funding for recycling programs and standardized facility metrics are among the goals this group hopes to meet.

SuStAinABility mAndAteS And poSitionSCMI continues its lobbying efforts in California and other states likely to adopt strict emission and energy use laws. Carbon taxes and cap-and-trade initiatives are policy items for consideration, as are mandatory curbside programs and package deposits.

As 2009 will surely be a year marked by climate change reform, CMI will continue to work with our lobbyists for best positioning, develop relationships with NGOs in order to promote our story, and identify industry-goals in order to continue our legacy as a premiere sustainable package.

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AT CMI, wE bElIEvE THAT CANS PROvIdE A true sustainable packaging option ANd THAT OUR RECyClINg AdvANTAgES dElIvER

ENvIRONMENTAL, SOCIAL ANd ECONOMIC vALUE.

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Government Relations Committees

Legislative CommitteeEnvironmental and energy concerns remain focal points for the Democratic Congress, specifically on Senator Barbara Boxer’s (D-CA) Environment and Public Works Committee (EPW) agenda, which continues to target global warming and propose emission reductions. On December 5, 2007, the EPW Committee approved S. 2191, the Lieberman-Warner Climate Security Act. This bill would establish a federal cap-and- trade program and reduce greenhouse gas (GHG) emissions by approximately 70% by 2050. The bill was amended to encourage states to use some of their pollution credit allowance to increase recycling rates or allow certain recycling projects to qualify as offset credits. It also studies how recycling can reduce greenhouse gas emissions. The Climate Security Act will likely get Senate floor consideration in 2008, although no comparable bills have been introduced in the House.

Regulatory Committee enviRonmentAlCMI continues to work with the American Chemistry Council (ACC) to remove EGBE from remaining environmental reporting requirements. The delisting of EGBE from the HAPs list of regulated air toxics under the Clean Air Act was followed with a need to convince the Agency to remove EGBE from the EPA Toxics Release Inventory (TRI) reporting requirements. TRI delisting would negate the need to report these emissions and enhance our environmental profile. The petition to delist was filed with EPA in August 2007. Stakeholder meetings with EPA have gone well, although the Agency has indicated that it wants to wait until the IRIS (Integrated Risk Information System) is updated in summer 2008 before moving ahead. CMI is lobbying EPA to move the delisting process along in a timely fashion.

The Federal Trade Commission (FTC) is reviewing its Guides for the Use of Environmental Marketing Claims (‘‘Green Guides’’). The Guides address general environmental benefit claims such as: ‘‘environmentally friendly;” “degradable;” “compostable;” “recyclable;” and claims related to recycled content; source reduction; refillability; and ozone safety/

Congressman Edward Markey (D-MA) introduced the Bottle Recycling Climate Protection Act on November 15, 2007. This traditional bottle bill would establish a nationwide bottle recovery system and impose a national five-cent deposit on cans, bottles, and other beverage containers. Unclaimed refunds would be directed to state programs for reducing greenhouse gas emissions, and the disposal of metal, glass, or plastic beverage containers in landfills or solid waste facilities would be prohibited.

In 2007, Congress restored the needed funding language to the appropriation bills contained in the newly signed FY ’08 omnibus budget measure. This follows actions by CMI and the Food Packaging Industry Coalition to target the congressional budget appropriations process and push for restored funding to the Food Contact Notification (FCN) program.

ozone friendliness. CMI continues to monitor FTC issues closely, particularly for effects to our sustainability activities.

In April 2007, the Department of Homeland Security (DHS) published a rule establishing security standards for chemical facilities. Chemical facilities are broadly defined as any establishments possessing a quantity of a chemical substance that meets risk-related criteria identified by the Department. CMI filed comments concerning DHS’ inclusion of propane (used by can plants as a backup fuel) and lack of guidance for chemicals used in mixtures. On November 20, 2007, the DHS published a number of positive changes, including an increase to the limit for propane and provisions for how to address mixtures. As a result, most can plants are not subject to DHS standards.

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StAte depoSit ACtivitieSExpansion activities among the eleven states with beverage container deposit systems are concerns for 2007-08. CMI is closely watching bills in New York, New Jersey and Michigan that call for state-specific beverage container UPC labeling codes. These attempts to curb cross-border redemptions would complicate inventory and multi-state deposit labeling for can makers. CMI will continue to monitor and coordinate industry positions on all packaging bills in order to support our customers and promote the growth and welfare of the industry.

heAlth & SAFetyIn the fall of 2007, the H&S Subcommittee updated the CMI Noise Control Feasibility Manual to upgrade its usefulness as an industry resource. Industry noise and hearing conservation programs have long been a priority for the Occupational Safety and Health Administration (OSHA). OSHA has indicated on numerous occasions that

its standards on hearing protection may be insufficient. In anticipation of a revised standard or related enforcement action, CMI developed the report for industry employers and plant managers. The revised report will help can makers measure the feasibility of administrative and engineering noise controls.

CMI collects and publishes an annual injury and illness survey from the industry. These statistics allow participating companies to compare their injury and illness statistics with the membership and to overall injury/illness data collected by the Labor Department’s Bureau of Labor Statistics. The survey results reflect a continuing injury/illness downward trend, with a 10.3% decrease in reported cases between 2006 and 2007. In particular, food and general line facilities showed significant declines.

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The Canned Food Alliance (CFA) is a consortium of industry members that have joined together to promote canned food’s nutritional and convenience benefits, alter negative attitudes and misconceptions, and increase canned food consumption. The CFA continued its brand platform, “Canned Food: The Nation’s Nutrition,” in 2007 by engaging research to support the many benefits of canned food. The CFA communicated these benefits to consumers, key influencers and the government.

Food Can Marketing Committee/ Canned Food Alliance

CommuniCAtionSIn 2007, the CFA funded two significant peer-reviewed research projects. The University of California-Davis provided a nutritional comparison between canned fruits and vegetables and their fresh and frozen counterparts. This research, published in the Journal for the Science of Food and Agriculture, confirmed that canned fruits and vegetables are nutritionally similar to fresh and frozen fruits and vegetables by the time of consumption. Additionally, the first phase of a Rutgers-based research project published in the Topics in Clinical Nutrition confirmed the poor state of the American diet and offered registered dietitian recommendations for improving family eating habits, such as stocking family pantries with nutritious and convenient canned food.

The UC Davis and Rutgers research helped generate more than 200 million media impressions. In total, the CFA exceeded its goal of 800 million media impressions, achieving over 820 million media impressions in 2007. The CFA conducted seasonal media campaigns around key events such as the Super Bowl, National Nutrition Month, summer vacation, Halloween and Thanksgiving. Additional consumer media highlights include recipe and nutrition driven media campaigns, such as the “CANfidential Creations” recipe collection that substituted canned fruits and vegetables for oils and fats in baked goods. The CFA also enjoyed great success working with Claudia Gonzalez, who helped communicate CFA messages to the Hispanic population.

inFluenCeR outReAChThe CFA continues to extend its messages to the media and to consumers by working with key nutrition influencers from its database of over 5,500 dietetic, culinary and media influencers. In addition to sharing UC Davis and Rutgers research results with this group, the CFA also exhibited at the American Dietetic Association’s Food and Nutrition Conference and Exposition, the largest trade show for dietetic and nutrition professionals. Attendees enjoyed samples of Andy Schloss’ “CANfidential Creations” and Carol Byrd-Bredbenner shared initial findings from phase one of the Rutgers research.

meAltime.oRgThe CFA added more than 50 recipes, many with food photography, to its online database in 2007. The CFA also utilized search engine optimization to introduce new visitors to the website, and continues to send weekly CANnection emails to its database of over 20,000 subscribers. All emails include at least three recipes featuring canned food products and incentives to drive recipients to the website for additional information. There were more than 955,000 unique sessions at mealtime.org in 2007.

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CFA puBliC poliCyThe CFA continues to ensure that federal food and nutrition policies and programs are consistent with 2005 Dietary Guidelines. These guidelines recommend that Americans include all forms of fruits and vegetables in their diet, whether canned, fresh, frozen or dried. The UC Davis research has certainly supported the canned food nutrition message to members of Congress and the Administration.

As Congress continues to work toward the reauthorization of the Farm Bill, the CFA continues to increase its profile by meeting with Congressional and Administration officials. While the Farm Bill has not yet passed, the CFA has been successful in getting the House and Senate to include favorable language in their versions of the bill. In addition to keeping either side from expanding language giving preference to fresh food, current House and Senate versions provide additional funding, expanded eligibility requirements and increased purchasing power for the Food Stamp Program, which should increase canned food purchases. The new Farm Bill also provides an additional $2.7 billion in

funding over 10 years for Section 32 purchases of fruits and vegetables, which are predominantly canned food purchases.

House and Senate versions of the Farm Bill allow the CFA and its members to apply for funding to conduct canned food research and marketing under the Specialty Crop Block Grant Program. These grants, up to $265 million on the House side and $365 on the Senate side, were not included in the 2002 Farm Bill. The Senate’s Farm Bill includes $50 million in potential grants for conducting pilot projects to test Food Stamp Program methods and help low-income Americans make nutritious choices. The USDA has also been instructed to prepare an annual report on consumer perceptions and consumption of canned food.

Women, Infants and Children (WIC) Food Packages now include canned fruit, vegetables, seafood, beans and juice, compared to the earlier inclusion with only canned carrots and juice. WIC includes a $934 million fruit and vegetable voucher over five years.

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Market Data Committee

In 2007, the CMI Market Data Committee continued to collect aggregated can shipments data and distribute it to members, the media and the financial community.

The Committee undertook a review of and made appropriate adjustments to non-reporter estimates used in the CMI Metal Can Shipments Reports. The Committee will continue to suggest additional changes as conditions warrant in order to ensure compliance with applicable anti-trust laws.

The Committee continues to analyze metal can shipments data in order to determine whether CMI will again breakout

the individual product categories that were combined last year due to changes in CMI’s disclosure rules.

The Committee will continue to provide CMI members with information to assist with business goals.

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Beverage Can Public Relations Committee / Aluminum Can Council The Aluminum Can Council (ACC) is a joint effort between the CMI Beverage Can Marketing Committee and the Aluminum Association’s Can Committee. The vision of the ACC is to be the voice of the aluminum can industry, to promote and foster recycling solutions, to educate consumers and customers about the aluminum beverage can’s positive attributes, and to explore new markets for aluminum beverage cans.

Aluminum CAn mARketingThe ACC continued its relationship with MatchPoint Marketing to create a second in-store promotion program at three major U.S. retail chains during the last quarter of 2007. In addition to targeting Stop & Shop supermarkets in New England and Giant stores in the greater Washington, D.C. area, the 2007 effort included Harris Teeter markets located in the mid-Atlantic region, an area of high PET usage. The promotions communicated directly to consumers at the point-of-purchase and centered around the CAN DO slogan and logo, educating shoppers on the easy stackability, quick chillability, and 100% recyclability of aluminum beverage cans. At Stop & Shop and Giant, when consumers purchased carbonated soft drinks in 12-pack containers, they were offered savings off future purchases via Catalina Coupons. Harris Teeter consumers were targeted in-home via a direct mail piece with coupon and in-aisle with cardboard standees containing educational brochures with a coupon for carbonated soft drinks in 12-pack cans. In 2008, the ACC will have a stronger focus on recycling and sustainability via an educational campaign at Wal-Mart.

Aluminum CAn ReCyCling The Curbside Value Partnership, sponsored by members of the Aluminum Association and the Can Manufacturers Institute, brings together municipal recyclers and private industry to reinvigorate recycling. Now five years old, CVP effectively engages recycling stakeholders; communities, state and local recycling coalitions, municipal recycling facilities and waste haulers have become involved in grassroots and national efforts to grow participation in curbside recycling programs.

Approximately 75% of beverage containers not recycled are consumed at home. The central goal for CVP is to increase the amount of aluminum and other valuable materials recycled in curbside programs and, by focusing on curbside recycling, CVP is tackling the issue of declining rates head-on. By launching education campaigns and showcasing best practices, CVP provides local programs with tangible tools for increasing participation, growing revenue and, most importantly, measuring success.

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In 2007, several new groups signed onto the program including: Mecklenburg County, North Carolina; Baton Rouge, Louisiana; and the entire state of Georgia. CVP also produced several new communication devices for communities to adapt and use locally. Among these is a national educational toolkit designed to help generate ideas and resources, which has been distributed to hundreds of communities. There is a free webinar featuring experts in education and current CVP partners; and the CVP Advisory Council, which is made up of representatives from successful recycling communities, advises the program and provides local perspectives on initiatives. Additionally, the semi-annual Bin Buzz newsletter, with an audience of 4,000 recycling coordinators nationwide, highlights best practices; and CVP’s website, www.RecycleCurbside.org, continues to serve as a clearinghouse for resources.

Since 2003, the CVP program has helped communities grow participation and increase recycling. On average, communities that partner with CVP to implement and measure education campaigns have seen a 22% increase in participation, yielding a 20% increase in recycling volume.

Another key component to the ACC recycling programs is the Recycle Challenge, funded by the ACC and run by Anheuser-Busch Recycling. The Recycle Challenge provides drop-off containers at schools and churches to collect aluminum beverage cans; local schools earn money for what is collected and communities learn about recycling and the environment. The program currently runs in eight cities with 528 bin placements. As of December 2007, over 1.2 million pounds of aluminum beverage cans have been collected.

ACC recycling programs continue to focus on the value of consumer education. In conjunction with the Keystone Center, the ACC conducted workshops at conferences for the National Science Teachers Association, the North American Association of Environmental Educators and Earth Science Teachers. New worksheets promoting America Recycles Day and the history of cans were introduced and well-received at the National Council for the Social Studies Conference, and interactive elementary school lessons about aluminum can recycling were released in time for Environmental Education Week and Earth Day. Over 6,000 curriculums were distributed via hardcopy, CD or download from cancentral.com in 2007. The ACC hosted its fifth annual intra-industry America Recycles Day Challenge in 2007, continuing to raise recycling awareness and reinforce the industry’s commitment to the environment. During the competition, plant employees deliver can recycling messages to their communities and demonstrate the value of aluminum beverage cans. Fourty-seven aluminum supplier and can manufacturing facilities joined the competition in 2007; 128 tons of used aluminum beverage cans were brought in for recycling and the program raised nearly $1 million for Habitat for Humanity, the American Red Cross, Toys for Tots, and local parks and recycling programs.

Congratulations to our 2007 Winners… Aluminum Suppler/Can manufacturer Category 1. Rexam, Fremont, OH2. Rexam, Saint Paul, MN3. Anheuser-Busch Packaging, St. Louis, MO mayor/municipal Recycling outreach1. Novelis, LaGrange, GA2. Ball, Monticello, IN

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Can Shipments Report

ABout thiS RepoRtThe CMI Metal Can Shipments Report is compiled directly from reports received from can manufacturers unless otherwise noted. This statistical program is sponsored by the Can Manufacturers Institute and is under the direction of the CMI Market Data Committee.

Cmi mARket dAtA CommitteeAsti Belt Ball CorporationTom Slauter Metal Container CorporationErica Korovilas Rexam Carolyn Takata Silgan Containers CorporationSean Reilly CMI

ACknowledgmentSThe Can Manufacturers Institute gratefully acknowledges the cooperation of all industry participants, especially the assistance of the members of the CMI Market Data Committee for their efforts in the compilation of this annual report.

pARtiCipAntS*Ball CorporationBWAY CorporationCrown Holdings, Inc.Impress USA, Inc.Metal Container CorporationRexam Silgan Containers CorporationVan Can Company

*Participants in the CMI Metal Can Shipments Report manufacture over 98% of the metal cans in the United States. In order to represent the entire domestic can industry, CMI estimates can shipments for non-reporters in its reports.

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geneRAl deFinitionSA metal can is a single walled container constructed wholly of tinplate, blackplate (including tin free steel), waste plate, aluminum sheet or impact extrusions, designed for packaging products. It excludes steel pails defined as single walled shipping containers having capacities of one to 12 gallons inclusive, that are cylindrically constructed of steel of 29 gauge and heavier.

Shipments for use by the same company, an affiliate, subsidiary, or parent company are considered as shipments FOR OWN USE. All others are considered shipments INVOICED FOR SALE.

Coverage of this report is confined to metal cans and ends shipped for use on metal cans by metal can manufacturers.

pRoduCt deFinitionSShipments: The actual number of unfilled can bodies produced, invoiced for sale and shipped from a location within the U.S. or U.S. controlled territory.

exports: The actual number of unfilled can bodies produced, invoiced for sale and shipped from a location within the U.S. or U.S. controlled territory to a location outside of the U.S. or U.S. controlled territory.

Alcoholic Beverages: A two piece aluminum container containing beer, non alcoholic beer, wine/spirits, or wine/spirit coolers.

non-Alcoholic Beverages: A two piece aluminum beverage container. Includes all carbonated and non carbonated soft drinks, iced tea, tonic, waters, juice beverages, milk or dairy-based beverages, and isotonic/energy drinks.

Fruit: Includes all conventional fruit items: apples, apple sauce, peaches, pears, pineapple, etc. and all citrus items. Does not include fruit juices, which are in the Fruit/Vegetable Juices category.

pet Food: Includes cat, dog and fish food.

vegetables: Includes conventional vegetable items: peas, green beans, corn, tomatoes, etc. Also includes dry line items:

baked beans, kidney beans. Includes mushrooms and pickles. Does not include soup which is in Soups & Miscellaneous Foods. Does not include vegetable juices, which are in the Fruit/Vegetable Juices category.

Soups & miscellaneous Foods: Includes all food items not otherwise enumerated. Includes soups, edible oils and solid shortenings, spaghetti, spices, baking powder, extracts, yeast, sandwich spreads, jams, mayonnaise, snacks, cocoa, dough, flour, honey, nuts, popcorn, popped corn, potato chips, pretzels, rice, noodles, sauces, syrups, cake, candies, cereals, loose tea and canned bags. Also includes drugs intended for human consumption except milk based drugs which are in Other Foods. Does not include iced tea which is in Non-Alcoholic Beverages.

other Foods: Includes Baby Food, Dairy, Fruit/Vegetable Juices, Seafood, and Meat & Poultry, including all milk or soy based baby formula and baby food products. Also includes dairy products, such as butter, cheese, eggs, milk, milk-based products, ice cream, etc. Also includes non milk-based puddings. Does not include milk or dairy-based beverages in two-piece aluminum beverage containers. Includes Seafood: fish and shellfish. Includes all conventional meat and poultry items: ham, luncheon meat, potted meat, vienna sausage. Also includes chili and meat stews. Does not include soup and spaghetti with meat which are in Soups & Miscellaneous Foods. Does not include fruit and vegetable juices in two piece aluminum beverage containers.

Aerosol: This is the only category restricted by can type. Includes food and nonfoods.

other nonfoods: Includes all other nonfood items not otherwise enumerated. Includes adhesive strips, alcohol, tennis balls, cements/dressings, chemicals, cleaners, cosmetics, dentists’ supplies, disinfectants, dyes, ether, wood fillers, games/toys, germicides, gasoline, lubricating grease, grinding compounds, insecticides, pencils, photographic supplies, plaster of paris, floor/shoe/leather/other non automotive polishes, body/cleanser/talcum powders, roofing cement, grass seed, shaving preparations, soaps, solvents, stamp pads, tobacco and automotive products such as motor oil, anti freeze, brake fluid, gasoline, radiator additives and automotive polish.

Definitions

2007 ANNUAl REPORT & CAN SHIPMENTS REPORT CAN MANUFACTURERS INSTITUTE 19

Page 20: 2007 - Can Manufacturers Institute · 12 Food Can Marketing Committee/ Canned Food Alliance ... Bob Lanham, Anheuser Busch ... 10 Bill Barker, Rexam,

20062005

Total Metal Cans Shipped

BY MARKETFor SaleBeverageFoodGeneral PackagingFor own useBeverageFoodGeneral Packaging

BY PRODUCTBeverageAlcoholicNon-Alcoholic

FoodCoffeeFruit (Excluding Juices)Vegetables (Excluding Juices)Soups & Miscellaneous FoodsPet FoodAll Other Foods**

Food By processTwo-PieceThree-Piece

general packagingAerosolOther Nonfoods

133,688

*27,3285,040

*2,163

0

99,15731,50667,651

29,491275

1,5089,9154,9656,6066,222

16,59812,893

5,0403,8741,166

135,998

*27,4534,989

*2,119

0

101,43832,24769,191

29,571303

1,20310,0415,2326,8535,939

17,18812,383

4,9893,8551,134

134,472

*27,1415,112

*2,073

0

100,14632,76867,378

29,214282

1,2719,5655,4606,9785,658

16,94212,272

5,1123,9091,203

-1.1%

-1.1% 2.5%

-2.2%--

-1.3%1.6%

-2.6%

-1.2%-7.1%5.7%

-4.7%4.4%1.8%

-4.7%

-1.4%-0.9%

2.5%1.4%6.1%

% Change2006 - 20072007

Metal Can Shipments: 2005 - 2007(Millions of Cans)

* To avoid disclosure of individual company data, this category has been omitted.** Includes Baby Food, Dairy, Fruit/Vegetable Juices, Seafood, and Meat & Poultry cans.

CAN MANUFACTURERS INSTITUTE 2007 ANNUAl REPORT & CAN SHIPMENTS REPORT20

Page 21: 2007 - Can Manufacturers Institute · 12 Food Can Marketing Committee/ Canned Food Alliance ... Bob Lanham, Anheuser Busch ... 10 Bill Barker, Rexam,

0 1 2 3 4 5 6

0.0 0.5 1.0 1.5 2.0 2.50 100 200 300 400 500 600

2007

2006

2005

2004

2003

2002

2007

2006

2005

2004

2003

2002

2007

2006

2005

2004

2003

2002512 (18.2%)

4,810 (-13.8%)

6,339 (4.1%)

2,081 (2.2%)

10,350 (19.2%)

7,188 (-10.1%)

471 (-8.1%)

4,732 (-1.6%)

6,168 (-2.7%)

1,957 (-6.0%)

10,591 (2.3%)

6,570 (-8.6%)

291 (-38.2%)

4,828 (2.0%)

6,627

1,597

10,350

6,812 (3.7%)

275 (-5.7%)

4,965 (2.8%)

6,222 (-6.1%)

1,508 (-5.6%)

9,915 (-4.2%)

6,606 (-3.0%)

303 (10.4%)

5,232 (5.4%)

5,939 (-4.6%)

1,203 (-20.2)

10,041 (1.3%)

6,853 (3.7%)

282 (7.1%)

5,460 (4.4%)

5,658 (-4.7)

1,271 (5.7)

9,565 (-4.7%)

6,978 (1.8%)

0 2 4 6 8 10 12

2007

2006

2005

2004

2003

2002

0 1 2 3 4 5 6 7 8

2007

2006

2005

2004

2003

2002

0 1 2 3 4 5 6 7 8

2007

2006

2005

2004

2003

2002

Food Can Shipments: 2002 - 2007(Millions of Cans)

CoFFee

SoupS & miSCellAneouS FoodS

All otheR FoodS**

FRuit (exCluding JuiCeS)*

vegetABleS (exCluding JuiCeS)*

pet Food

* 2000-2003 Fruit & Vegetable (Excluding Juices) data does include juices. In 2004, Fruit/Vegetable Juices were broken out into a separate category.** Includes Baby Food, Dairy, Fruit/Vegetable Juices, Seafood and Meat & Poultry cans.

2007 ANNUAl REPORT & CAN SHIPMENTS REPORT CAN MANUFACTURERS INSTITUTE 21

Page 22: 2007 - Can Manufacturers Institute · 12 Food Can Marketing Committee/ Canned Food Alliance ... Bob Lanham, Anheuser Busch ... 10 Bill Barker, Rexam,

0 1 2 3 4 5

2002

0 1 2 3 4 5

2003

0 1 2 3 4 5

2004

0 1 2 3 4 5 6

2005

0 1 2 3 4 5

2006

0 1 2 3 4 5 6

2007

4,346

5,040

4,361

4,989

4,454

5,112

3,083

3,874

3,135

3,855

3,221

3,909

1,263

1,166

0 20 40 60 80 100

2004

91,368

8,433

99,801

0 20 40 60 80 100

2005

89,580

9,577

99,157

0 22 44 66 88 110

2006

90,941

10,497

101,438

0 22 44 66 88 110

2007

88,351

11,795

100,146

1,226

1,134

1,233

1,203

2006(Millions of Cans)

Aluminum CAn ShipmentS,expoRtS 12 Ounce or LessOver 12 Ounce & Less Than 1 GallonOver 1 Gallon

Aluminum CAn ShipmentS, impoRtS12 Ounce or LessOver 12 Ounce & Less Than 1 GallonOver 1 Gallon

Steel CAn ShipmentS, expoRtS13.21 Gallons or Less (closed by crimping or soldering)

Steel CAn ShipmentS, impoRtS13.21 Gallons or Less (closed by crimping or soldering)

2,993.8152.9283.4

543.9179.0176.9

690.8

787.3

3,770.210.8

299.1

682.276.7

186.9

992.9

665.5

25.9%-93.0%

5.5%

25.4%-52.7%

5.6%

43.7%

-15.5%

% Change2006 - 20072007

geneRAl line CAn ShipmentS: 2002-2007 (Millions of Cans)

BeveRAge CAn ShipmentS By Size: 2004-2007 (Millions of Cans)

*2005, 2006 and 2007 data includes aluminum aerosol cans.Total Aerosol* Other

12 Ounce All Other Total

Source: U.S. International Trade Commission

CAN MANUFACTURERS INSTITUTE 2007 ANNUAl REPORT & CAN SHIPMENTS REPORT22

Page 23: 2007 - Can Manufacturers Institute · 12 Food Can Marketing Committee/ Canned Food Alliance ... Bob Lanham, Anheuser Busch ... 10 Bill Barker, Rexam,

Cmi exeCutive CommitteeBAll CoRpoRAtionR. David HooverJohn HayesHarold Sohn

CAn mAnuFACtuReRS inStituteRobert R. Budway

AnheuSeR-BuSCh pACkAging gRoup /metAl ContAineR CoRpoRAtionMike HardingKirk NorrisTony Bhalla

RexAmLeslie Van de WalleWilliam BarkerHarry Barto

SilgAn ContAineRS CoRpoRAtionTom SnyderDave Bevan

SuBSCRiption inFoRmAtion:Intended for survey participants and members of the Can Manufacturers Institute, monthly Metal Can Shipments Reports are mailed approximately 45 days after the end of each month. Quarterly reports are available on a subscription basis to government, public and private organizations, and individuals upon request. Subscription Rates:$600 per year for domestic annual subscriptions; $180 for a single annual report. Rates include taxes, postage and handling costs and pre-payment is required. Mail subscriptions to:

Can manufacturers institute1730 Rhode island Avenue, nwSuite 1000washington, dC 20036-3101

Cmi memBeR CompAnieS 2008ALCOA, Inc.ARCO Aluminum Inc.Ball CorporationBWAY CorporationDarex Container Products, W.R. Grace & Co.Dofasco Inc.ICI Packaging CoatingsImpress USA, Inc.INX International Ink CompanyMetal Container CorporationNovelis Inc.PPG Industries, Inc.RexamSilgan Containers CorporationSonoco-Phoenix, Inc.The Valspar CorporationUSS-Posco IndustriesUnited States Steel Corporation, Tin Mill ProductsVan Can CompanyWatson StandardWise Alloys LLC

2007 ANNUAl REPORT & CAN SHIPMENTS REPORT CAN MANUFACTURERS INSTITUTE 23

Page 24: 2007 - Can Manufacturers Institute · 12 Food Can Marketing Committee/ Canned Food Alliance ... Bob Lanham, Anheuser Busch ... 10 Bill Barker, Rexam,

(T) 202.232.4677 (F) 202.232.5756

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