2018-19 CMI Annual Report

01 2018 Annual Meeting

04 CMI Mission & Goals

05 Letter from the President

06 Sustainability

07 Canstruction

08 Scientific and Regulatory Affairs

09 Legislative Issues

11 Consumer Access Advocacy

12 Cans Get You Going

15 Building Trust in Cans and Can Linings

Can Shipments Report

17 About This Report

18 Definitions

19 Metal Can Shipments: 2016 - 2018

20 Food Can Shipments: 2013 - 2018

21 General Line Can Shipments: 2013 - 2017

21 Beverage Can Shipments by Size: 2014 - 2017

22 Aluminum Can Shipments, Exports: 2013 - 2017

22 Steel Can Shipments, Exports: 2013 - 2017

23 Executive Committee

23 CMI Member Companies

2018-19 CMI Annual Report

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2018 Annual Meeting1

CMI Annual Meeting Opening Reception. CMI members kicked off the 2018 CMI Annual Meeting at the historic Decatur House, near the White House in Washington, DC, for the opening reception.

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White House Briefing. Members then attended a White House briefing at the Eisenhower Executive Office Building with Stephen Munisteri, deputy director White House Office of Public Liaison, and Stewart Young, deputy assistant, U.S. Trade Representative for Intergovernmental Affairs and Public Engagement. Can makers had the opportunity to voice their concerns over President Trump’s 232 tariffs.

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CMI Capitol Hill Fly-In: CMI members descended on Capitol Hill to meet with their representatives and senators. In total, 39 congressional meetings were held to advocate and educate officeholders and their staffs on four issues: recycling and sustainability, innovation in can linings, aluminum and steel tariffs, and Farm Bill reauthorization. The day ended with a Reception in the Rayburn House Office Building.

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CMI MISSION AND GOALS

Promote the Can: • Focusonopportunitiesforgrowth

• Increaseshareoftotalbeverageandfood packaging through promotion of the benefits market advantage and sustainability.

Protect the Can• Defendexistingmarketsandeffectively oppose legislative and regulatory efforts that result in limiting the market or reduction in manufacturers’ ability to produce cans.

Serve the Members• Providecommunicationtomembershipon issues. Train member company personnel on issues, activities and messages so they become advocates for industry.

• Supportand/ordrivememberbusiness planning, communications and legislative activities through market data and analysis.

MISSIONThe Can Manufacturers Institute’s mission is to

protect and promote the industry while serving

their membership. CMI’s mission manifests

itself through various promotional programs and

lobbying activities. CMI’s dedication to these goals

is evident in what has been accomplished and

is detailed in this Annual Report, which outlines

strategies to meet the association’s objectives.

GOALS

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A reporter called the CMI office recently asking, “why have aluminum tariffs caused a shortage in the supply of beer and beverage cans.” I broke down her question, stating that tariffs have caused a rise in global aluminum prices and that basic economics dictate that higher prices creates less demand. While my somewhat snide remark may have been edifying, I then proceeded to answer her question, explaining that can shipments are up more than 3 percent in the fourth quarter of 2018 and the first quarter of 2019. The reporter then asked the question I was waiting for -- “Well, if prices are up, then why is demand up?” And the answer is, of course, because the can’s superior functionality and sustainability attributes are winning in the marketplace over other substrates that are struggling to match the can’s performance.

Nowhere was this more apparent than on my recent visit to Sacramento. The California capital is abuzz with the desire to be a leader in the debate to solve the global plastics disposal issue. I visited the offices of many legislators, on both sides of the aisle, as well as state regulators, who referred to the can as a model of sustainability. Nearly everyone asked how beverage companies and consumers can be compelled to use more cans to replace plastics.

How we capitalize on this opportunity is both an industry and company-specific question. CMI should play a role in supporting individual company efforts by talking to influencers, customers and consumers about the can’s superior attributes, while working to strengthen the narrative that make its environmental halo the envy of other packaging. The CMI Recycling Committee is taking an active role in these activities, and CMI will be adding a sustainability communications staff person that will take a more public-facing role in conveying the industry’s messages.

As we all know, opportunities don’t last forever, and someday our industry’s competitor substrates will, by government fiat or economic necessity, rival us in the package’s sustainability and functionality. We need to work diligently to ingrain that narrative into the hearts and minds of numerous audiences while the window of opportunity is open. I hope that in whatever role you or your company play in our industry, you will do your part to elevate the superior attributes of the can.

Regards,

Robert Budway, President

F R O M T H E P R E S I D E N T

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CMI RECYCLING COMMITTEECMI’s Recycling Committee works to position the can as the sustainable package and raise the recycling rate for aluminum beverage cans. The three-pronged approach includes communications, infrastructure and policy activities.

Recycling Economies Study and Public Relations Program

CMI will conduct a study that will analyze how aluminum sustains the country’s recycling infrastructure and determine what would happen to the infrastructure if the aluminum beverage can recycling rate continue to decline. The economic benefits study will provide messages for the industry to reach out to stakeholders, such as MRF (municipal recycling facilities) operators, state legislators and regulators and beverage companies, about how aluminum supports the entire recycling system and urge their investment in aluminum recycling.

National Association of Convenience Stores Recycling Pilot

CMI finalized a recycling toolkit to increase recycling away from home that is available to the 154,000 stores associated with the National Association of Convenience Stores (NACS). NACS has identified Sheetz as a convenience store that is interested in a pilot to test if in-store recycling messages increase aluminum can recycling.

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SustainabilityDepartment of Energy Appropriations Funding

Language in the Department of Energy’s 2019 Appropriations Bill directs funding to a study on aluminum can recycling and the use of double eddy currents. This study will encourage recycling operators to install second eddy currents at facilities to divert aluminum that may be currently lost to landfill.

Food Waste

Michigan State University professor and recognized food waste expert, Dr. Claire Sands, completed a study that shows how food cans help to significantly offset food waste and nutrient loss. Dr. Sands evaluated tomatoes, spinach and beans, whichrepresent a variety of food groups and container options. She recorded a video that was distributed to CMI members and presented at two conferences in 2018. The study results will be used in the growing conversations about how food cans and canned foods are a solution in the quest to decrease food waste.

MRF Research and Infrastructure Program

CMI believes that aging or inefficient eddy currents at MRFs are responsible for many cans being sent to landfills instead of kept in the recycling stream. Anecdotal research shows that an upgraded eddy current or an additional eddy current can provide an additional 30,000 to 40,000 pounds per month. With the average cost of an eddy current at $110,000, the ROI is around five months. CMI presented the concept to The Recycling Partnership’s MRF working group, moderated a panel at the MRF Operators Forum in Chicago in October 2018, and published an article in Recycling Today in February 2019.

Recycling Today article touts additional eddy currents capture more UBCs.

Research finds canned foods are a solution to the food waste dilemma.

Capturing the last canFeatures • MRF Series

MRF’s that have added a second eddy current to their sorting lines have been able to capture more UBCs that otherwise would ahve been lost to residue.

February 28, 2019

News and information for Recycling Professionals

The National Building Museum hosted 26 teams participating in the 2018 Canstruction, a contest in which teams build sculptures out of canned goods and collect food donations for local pantries. CMI has been a long-time sponsor of the program and as a result Canstruction incorporates can nutrition information, recipe cards and sustainability messaging into its media kit and competition signage. This year’s theme was "CAN't Stop the Beet." In Washington, the program is put on by the Washington Architectural Foundation to benefit the Capital Area Food Bank through donations of canned goods and non-perishable items. Visitors to the museum can vote for their favorite sculpture by donating a can of food. The program donated 69,367 pounds of canned food to the Capital Area Food Bank.

CANSTRUCTION

The Rolling Stone’s iconic tongue logo, made out of Hunt’s tomato sauce and Goya black bean cans, greets you when you walk into the museum.

Celebrating the song from Queen and paying tribute to D.C.’s own Stanley Cup-winning Washington Capitals, this sculpture celebrates in #ALLCAPS.

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The Science, Technology and Regulatory Affairs Committee (STARS) is working to identify and address regulatory impacts on the industry, especially on those issues that cover environmental, health and safety, chemical food safety and packaging issues.TheChemical/FoodSafetySubcommittee (CFS) and Environmental Health and Safety Subcommittees (EHS) create industry-wide solutions to address state and federal regulatory challenges.

Chemistry and Food Safety Subcommittee (CFS)

• Analyzedscopeanddefinitions for state legislation on perfluorinated chemistries.

• Monitoredissuesassociatedwith California Proposition 65 (Prop 65), including regulatory changes and key court decisions.

• Conductedevaluationofchemicals added to Prop 65 in 2017 and potential impact for CMI members.

• Designeddecisiontreetoaddress chemicals of interest.

• Participatedinreviewandupdate of Grocery Manufacturers Association (GMA) Science Education Foundation (SEF) Canned Foods Manual.

• Coordinatedwithmembersto provide technical assistance to GMA SEF with online training.

Environmental Health and Safety Subcommittee (EHS)

• Metwithseniorstaffofthe Environmental Protection (EPA) agency and Occupational Safety and Health Administration (OSHA) to discuss and provide technical expertise on environmental and health and safety regulations.

• Submittedcommentssupporting OSHA’s proposal to remove the requirement for electronic reporting of Forms 300 and 301.

• FiledcommentsinsupportofEPA’S two-year delay of the 2015 Clean Water Rule implementation date.

• WorkingwithaffectedEPA Maximum Achievable Control Technology (MACT) Risk and Technology Review (RTR) facilities to review the air modeling files and providefeedback/commentbackto EPA for a future RTR rule.

• SharedinformationwithCMI membership on environmental, health and safety “key issues” that arise during inspections, enforcement and permitting actions taken by federal regulators.

Injury and Illness Annual Survey Results

CMI collects and publishes an annual Injury and Illness Industry Survey.These statistics allow participating companies to compare their injury and illness statistics to the industry and overallinjury/illnessdatacollectedby the U.S. Labor Department Bureau of Labor Statistics. The most current survey results reflect a continuing injury/illnessdeclineinreportedcases.

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Injury/Illness Total Case RateAnnual Industry Trends

6

5

4

3

2

1

0

Case

s Pe

r 100

Em

ploy

ees

4.9

3.4 3.23.6

2.9 3.0

4.4

2.7 2.5 2.6 2.5

3.73.9

2.7

3.42.8

2.1

BLS CMI *Year 2018 BLS data not available

Scientific and Regulatory Affairs

2010 2011 2012 2013 2014 2015 2016 2017* 2018*

Legislative Issues

2010 2011 2012 2013 2014 2015 2016 2017* 2018*

Congress Passes Farm Bill In 2018, Congress passed a $900 billion, five-year Farm Bill, which included most of the industry’s priorities.

The bill maintains access and availability of fruits and vegetables in all forms through Supplemental Nutrition Assistance Program (SNAP). The Farm Bill provides $757 million for federal nutrition programs, which is an increase of $119 million. The final bill did not include the House proposal for stricter work requirements, which would suppress participation. Also, there were no limits to consumer food choices for SNAP recipients, including no restrictions on foods or sugar sweetened carbonated beverages. There was also an increase in funding and promoting consumption of all forms of fruit and vegetables through USDA nutrition programs, which included an increase in funding for The Emergency Food Assistance Program (TEFAP) by $206 million over the five-year life of the bill. TEFAP provides funding for purchases (mostly canned) by food banks. There was also an increase of $4 million per year for states to reduce food waste at the agricultural production, processing or

distribution level, including innovative ways to make food shelf-stable, with canned foods being a perfect solution. Finally, the bill includes $417 million in new funding for the renamed Gus Schumacher Nutrition Incentive Program (formerly “Food Insecurity Nutrition Incentive (FINI) grants”). Under this program, it includes language to allow retailers to provide financial incentives for all forms of fruits and vegetables, including canned products at point-of-purchase for individuals using SNAP benefits. The program also expands who can partner in projects to include public, private, nonprofit, or for-profit entities.

CMI will work to make sure that the Farm Bill is promulgated through the appropriate Federal agencies in 2019.

Trade

US Department of Commerce Section 232 Investigation on Imported Steel and Aluminum

CMI has continued to educate members of Congress and the Executive Branch on the harmful effects of the Section 232 tariffs on imported steel and aluminum. CMI met with more than 100 Members

of Congress and held five meetings with Executive Branch officials on this issue. The following resulted from these meetings:

• Lobbiedtoget43membersof Congress to sign a letter to President Trump and Secretary of Commerce Wilbur Ross supporting an exclusion of the U.S. can manufacturing industry from the Section 232 tariff.

• Providedtechnicalexpertisetohelp members on Section 232 tariff exclusion process.

• Collaboratedwith20foodand beverage trade associations opposing Section 232 tariffs on steel and aluminum.

• FiledcommentstoU.S.Trade Representative (USTR) requesting the removal of steel and aluminum tariffs and quotas for future trade agreements (U.S.-Japan Trade, U.S.- UK Trade Agreement, U.S.-EU Trade Agreement).

• FiledcommentstoUSTRon2019 National Trade Estimate Report on Foreign Trade Barriers requesting removal of Section 232 tariffs on steel and aluminum and cautioning against quotas on imports.

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Legislative Issues

Section 301 China InvestigationIn September 2018, the Trump administration levied an additional $200 billion in tariffs on Chinese goods. The tariffs took effect on September 24, 2018, and were set at a level of 10 percent until the end of the year. The tariffs were set to rise on January 1, 2019, to 25 percent but were put on hold as negotiations between the two countries were continuing. CMI requested that Chinese canned food and finished cans be subject to tariffs. The USTR will apply the tariff to canned food, finished steel and aluminum cans. It will not be applied to lids, tanks, tinplate steel and cansheet aluminum.

Grassroots OutreachCMI had a robust grassroots outreach in 2018, which included:

• Visitswith35MembersofCongress during the CMI Annual Meeting

• SecuringaWhiteHouseBriefing during the CMI Annual Meeting

• Hostingfivecanplanttoursto Members of Congress

• ParticipationbytwoCMImember companies in a 232 Tariff Roundtable with Sen. Pat Toomey (R-PA).

CMI will continue with more grassroot outreach activities in 2019 for newly elected Members of Congress and Executive Branch officials.

Legislative Affair continued

• Helpdefeatabillthatwouldhave required that every sugar-sweetened beverage sold in California in a sealed container be labeled with, “STATE OF CALIFORNIA SAFETY WARNING: Drinking beverages with added sugar(s) contributes to obesity, type 2 diabetes, and tooth decay.”

• Defeatabillthatmandated manufacturers of food packaging or cookware that is sold in the state to visibly disclose on an exterior location of the food packaging or cookware packaging a specified statement relating to the presence of perfluoroalkyl and polyfluoroalkyl substances (PFAS). The bill defined “food packaging” as “a nondurable package, packaging component or foodservice ware that is intended to contain, serve, store, handle, protect or market food, food stuff or beverages.

CMI expects to see more state level legislative and regulatory challenges for the industry in 2019 and is ready to meet them head on.

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In the States

Soft Drink Taxes CMI continues to engage with the beverage industry to oppose state and municipal sugary drinks taxes. CMI worked with industry partners to pass legislation in California prohibiting new local taxes on groceries, including carbonated and noncarbonated non-alcoholic beverages, through the end of 2030. The new law is retroactive to January 1, 2018, and does not impact local taxes passed by voters prior to the beginning of the year. CMI will continue to work with industry partners to repeal or prevent these measures from being passed in other states and cities.

Green Chemistry/Safer AlternativesCMI was successful in stopping legislation banning and or regulating greenchemistry/saferalternativesin Massachusetts, Rhode Island and Mississippi.

In 2018, CMI continued to face significant challenges in California, however, by working with resources and industry partners in the state, CMI was able to:

• Stopabillthatwouldhaverequired CalRecycle to set minimum content standards for aluminum beverage containers. CMI was able to exclude aluminum in the final version of the bill. The final bill ultimately failed to pass the legislature.

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CMI showcased that canned foods and beverages are the solution to the nation’s need for safe, nutritious and quality foods and beverages. CMI advocated for their inclusion in government nutrition programs through outreach and engagement with government and non-government organizations across its multi-faceted advocacy efforts. 2020 Dietary Guidelines for Americans Process Begins. CMI has continued advocacy activities on the 2020-2025 U.S. Dietary Guidelines for Americans (DGA), a policy document that ultimately informs federal feeding programs that include canned foods and beverages. CMI is collaborating with the Food and Beverage Issue Alliance (FBIA) DGA Working Group. Participation in this group is particularly important for gathering intelligence on how the DGAs may pose potential threats or opportunities for food cans.

CMI also supported the Beer Institute and the American Beverage Association in advocacy around nominations for experts to serve on the 2020 Dietary Guidelines Advisory Committee (DGAC). And, through its partnership with the American Fruit and Vegetable Processors and Growers Coalition, CMI united the packaged fruit and vegetable industry around DGAC nominations, thereby increasing the impact of its comments to the departments. The DGAC is the scientific body that informs the development of the DGAs, which significantly impacts food and beverage policy in the United States.

CMI will continue to work with its partners to ensure the DGAC considers the value of canned foods in achieving healthy dietary patterns, and rigorously assesses the totality of evidence around beverages, including beer, spirits and wine.

State WIC Outreach. CMI gave a very impactful in-person educational presentation to the DC and Maryland WIC program staff as part of their all-staff training, demonstrating how canned fruits and vegetables, along with other forms, can increase their clients’ overall consumption of fruits and vegetables.

Social Media. The food can advocacy work also includes continued dissemination of key canned foods messages via Twitter during critical times on the Hill as Congress considers Farm Bill legislation. To amplify @FoodCans presence on Twitter, there have been paid promotions of tweets to increase engagement, followers and shared original creative dynamic images. This has led to an increase in followers by almost 100. CMI continued to implore its partners to engage with its advocacy twitter handle, @FoodCans, throughout National Canned Food Month (February). And, CMI brought daily canned food facts to its influencer followers throughout the month, garnering 12.8 thousand impressions.

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Consumer Access Adovacy

Advocacy twitter handle engages government and NGOs.

Can Manufacturers Institute@FoodCans

Can industry jobs are well-paying American #jobs, compensating an average of $68,545 in wages and benefits! #SpotlightSunday #CannedFood Month

Cans Get You Cooking, the successful

national consumer campaign designed to

raise awareness of the lesser-known benefits

of canned foods and increase canned food

usage over time, returned in 2018 with a

refreshed look and insights driven messaging.

The campaign, now in its 6th year, elevates

the importance of canned foods and aims to

change the conversation around canned foods

amongst editorial, social and target consumer

audiences. Showcasing canned foods as

essential components of wholesome, delicious

and Instagram-worthy meals, the program

highlights and celebrates canned foods in the

context of the daily, modern lifestyle of the

Millennial Mom target consumer.

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Marketing and Communications

Following the completion of a comprehensive research study to examine the drivers of feelings of guilt in relation to canned foods, a powerful science-backed messaging track was developed to fuel the reinvigorated campaign and demonstrate the role canned foods play in helping the target consumer feed her family in a way she can feel good about. There is currently a surround sound of public relations, along with social and digital media activity that includes owned, earned and social influencer programming. Meanwhile, a strong credentialed influencer program educates registered dietitians (RDs) and other health professionals with the goal of generating support and vocal advocacy for canned foods among key nutrition influencers who reach the campaign’s core consumer target.

To kick-off the 2018 evolution of the campaign, a new website and social media creative was developed specifically with Millennial Moms in mind. These platforms now feature gorgeous imagery and recipes that showcase the benefits of cooking with canned foods, perfectly positioning the campaign in the context of the modern, aspirational lifestyle the target consumer seeks. Since the relaunch in August 2018, CansGetYouCooking.com has seen more than 100,000 visitors – 98.4 percent of the users were new to the page, indicating that awareness is growing.

In order to arm credentialed influencers with relevant resources and informa-tion, the CansGetYouCooking.com nu-trition professionals page was created in 2018, as part of the newly refreshed website. This page serves as a hub for

credentialed influencers to visit, where they can review the latest information on canned food nutrition research and download visually compelling resources to share with their audiences. Since the website relaunched on August 1, the nutrition professionals page has received almost 1,700 pageviews. To correspond with the launch of the nutrition professionals page of the new website, an interactive culinary immersion event was held for credentialed influencers in New York City in August 2018. The event armed credentialed influencers with guilt-alleviating reasons to believe in the benefits of canned foods, in addition to the latest research, so that they can credibly communicate about and advocate for canned foods among their audiences. Following the immersion event, five RD partnerships with event attendees were secured, in the form of original recipe blog posts and social shares. The objective of these media placements was for the RDs to share key event takeaways, to inspire their followers to incorporate canned foods more often into their

cooking. Additionally, the RDs were tasked with creating seasonal recipes using a variety of canned foods, and to showcase the nutritional benefits – as well as the convenience – of cooking with cans. Collectively, the post event media RD partnerships and two earned media placements generated more than 31,000 impressions.

Cans Get You Cooking also opened up consumer conversation via a new social media channel, Instagram. Since August, the @CansGetYouCooking Instagram channel has provided an additional platform to communicate campaign messaging paired alongside beautiful, crave-able images of recipes made using canned foods. To date, the channel has secured more than 5,000 followers, bringing the campaign’s total social media following to more than 200,000 between Facebook, Twitter and Instagram. With a revitalized foundation in place, the Cans Get You Cooking campaign set out to highlight and celebrate canned foods in the context of the daily modern life of Millennial Moms on an ongoing basis and during two key tentpole moments: Back-to-School “season” and National Canned Food Month (February).

Back-to-School season allowed the campaign to showcase how canned foods help mom win mealtime by delivering the essential nutrients her family needs while cutting down on meal preparation, meaning less time in the kitchen and more time with family. To bring the story to life, the campaign partnered with industry and category

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CansGetYouCooking.com

In honor of National Canned Food Month, Registered Dietician Natalie Rizzo featured a Coconut Fried Rice recipe on her blog that touted the benefits of using canned food.

influencers – ranging from lifestyle expertstonutritionists/RDs–tosecurefeatures in popular outlets such as U.S. News and World Report and Health Magazine as well as inclusion in local TV segments across the country.

Millennial Mom, the Millennial Foodie and the Millennial New Mom. These influencers created and published appealing content highlighting canned foods, along with campaign key messages.

Following Back-to-School season and throughout the holidays, Cans Get You Cooking continued to partner with social influencers to not only populate their own personal blog and social channels with engaging content and inspired recipes that helped alleviate guilt amongst Millennial Moms, but also act as content creators developing creative recipes and compelling imagery for the campaign’s social channels.

As February 2019 rolled around, the campaign centered all activities around the celebration of National Canned Food Month. The cornerstone of February’s activity was a dynamic “explainer video” created to assuage guilt while also communicating the nutritional and functional benefits of cooking with canned foods. This video lived on the Cans Get You Cooking website and social platforms throughout the month, and it was amplified through two partner distribution networks, as well as the social channels of friends of CMI. In total, the video has generated more than 13 million views to-date. During this same time, the campaign also engaged additional social influencers to develop social media content specifically for National Canned Food Month and to further reinforce the messaging and highlight creative,

family friendly meals made using canned foods. To ensure a complete surround where the target consumers were also reached via broadcast media, Cans Get You Cooking executed a broadcast media tour with Wall Street Journal best-selling author and registered dietitian Toby Amidor. In addition, the campaign engaged a number of lifestyle experts and RDs in several more local TV segments that brought the many benefits of cooking with canned foods into the homes of Millennial Moms across the country.

Rounding out the program with online and print media coverage, Cans Get You Cooking conducted an extensive media outreach program and distributed a short, feature article titled, “Healthy Mealtime Inspiration in Your Pantry,” which was published by local newspapers nationwide. In total, Cans Get You Cooking was featured in more than 2,531 broadcast, print and online placements securing more than 333.3 million impressions and partnered with 23 social influencers resulting in more than 28 million impressions and 137,308 engagements between August 2018 and March 2019. In addition to partnering with RDs for media placements, Cans Get You Cooking continues to educate credentialed influencers about the many benefits of canned foods via Under the Lid e-newsletters, which are distributed three times a year to a constantly growing database of RDs and other health professional canned food advocates. The first 2019 e-newsletter was deployed this past February to a database of more than 240 RDs, with a National Canned Food Month theme. The post-distribution metrics were very strong, with an above average industry

open rate of 28.7 percent. At the end of April, the Cans Get You Cooking program’s long-standing partnership with the Produce for Better Health Foundation (PBH) was highlighted at PBH’s annual Consumer Connection conference, which brings together thought leaders and consumer influencers around the shared goal of increasing Americans’ collective produce consumption. During the conference, Cans Get You Cooking participated in a sponsored educational session titled, “Keto, Paleo, Mediterranean, Oh My! How Consumer Adherence to Dietary Patterns Influences Produce Consumption.”

Cans Get You Cooking conducted a follow-up study to measure the impact of the campaign on consumer usage, intentions, guilt and attitudes toward canned foods. The results and strategic implications of this study will be used to further refine the evolution of the campaign and ensure its message continues to help consumers better understand and feel good about the healthy, delicious and nutritious meals that they can prepare for their family using canned foods.

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Under the Lid Newsletter educated credentialed influencers about the benefits of canned foods.

Building Trust in Cans and Can Linings

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As the can and can lining industry continues its innovation journey, addressing the concerns and questions of key stakeholders and consumer influencers is essential to building trust in the safety of next generation can linings.

The initiative combines proactive and reactive programming to accomplish the following desired outcomes:

• Keystakeholdersareawareof and support alternative can linings. Stakeholders unwilling to be outwardly supportive of alternative can linings remain neutral and don’t actively oppose them.

• Third-partyexpertsrespondto articles and blog posts that challenge alternative linings to provide a counter narrative and prevent misinformation from spreading.

• Keymediahaveagreater appreciation for the safety and role of new lining technology in today’s food system.

• Consumerinfluencersembrace the benefits of canned foods and beverages and advocate for them in media articles, blog posts and online discussions.

Engaging Stakeholders to Nurture Constructive DialogueThe goal of this pillar of the initiative is to proactively engage with key stakeholders to ensure they are aware of, and support, next generation can linings, and to neutralize the opposition of stakeholders who are unwilling to outwardly support the new linings. To accomplish this, CMI’s members conducted briefings with

the numerous stakeholder groups, including Food Marketing Institute, Grocery Manufacturers Association, World Wildlife Federation, American Association of Retired Persons, National Grocers Association and Produce for Better Health. In addition, briefings were conducted with key stakeholders in Massachusetts in July and Oregon in September.

Additional opportunities to engage with stakeholders include placing articles with information on next-generation linings in key publications targeting stakeholders. Two handouts were designed to present information that is of keen interest to stakeholder groups about the sustainability of metal cans and the research and development of next-generation can linings. An article about the evolution of food cans was published in Food Dive in July 2018, reaching 71,000 people directly and shared more than 110 times through social media. A similar article was placed in CanTech International. Two articles highlighting the industry’s innovation journey were placed in Packaging Strategies magazine in March. As part of its 2019 Packaging Outlook series, the publication covered the sustainability, versatility, quality and convenience benefits of metal packaging. Additional coverage

highlighted the campaign’s strategy and results of the 2018 Farm-to-Can tour, which included nine consumer influencers. Listening, Engaging and Empowering Online

This pillar of the initiative consists of two strategies:

• Activemonitoringofmediaand online conversations about cans and can linings and correcting misinformation via a team of third- party Rapid Response Team members.

• Proactivelyengagingand empowering moms via online channels and consumer influencer engagement.

The target audience for these activities was identified through digital ethnography research. The key consumer segment this initiative targets are “Wellness Mommas.” Wellness Mommas represent women between the ages of 30 to 45 with children. They represent about 12 percent of the U.S. population and take on the responsibility of trying to get their family to eat, drink and exercise in healthier ways.

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Building Trust in Cans and Can Linings

refreshingreal Ever wondered what happens to your corn before it ends up in your pantry?Spoiler alert: the process is simpler than youthink. Clickable link in bio:http://ow.ly/cOFe30krrlz***#farmtocan #corn #cannedc0rn #cannedfood#easyfood #healthy #cantry

refreshingreal Ever wondered what happens to your corn before it ends up in your pantry?Spoiler alert: the process is simpler than youthink. Clickable link in bio:http://ow.ly/cOFe30krrlz***#farmtocan #corn #cannedc0rn #cannedfood#easyfood #healthy #cantry

Monitoring and Engagement

News media articles, broadcasts and online postings about cans and can lining are monitored daily. A weekly report compiles the most relevant articles and shares it with committee members. Because hundreds of articles and posts discuss cans on a weekly basis, a response decision tree helps determine when to activate a response, placing the highest priority on articles discussing next generation can linings placed in publications targeting Wellness Mommas.

The Rapid Response Team was activated several times throughout the year to engage with media and influencers to address inaccurate or misleading information about cans or can linings.

In July, Rebecca Scritchfield, RD, provided a comprehensive response to a report from the American Academy of Pediatrics (AAP). She sent letters to the AAP and Dr. Leonardo Trasande, the report’s lead author. She engaged online with several media outlets, including ABC News, New York Times, CNN, USA Today, and Consumer Reports.

Throughout the year, members of the Rapid Response Team were engaged to reach out to reporters, media outlets and influencers to address misinformation about can linings. Activities included responses to US News and World Report, CBS News, Business Insider, Fox News and Care 2, a subscription-based health and wellness web site.

Engaging and Empowering via Online Channels

The initiative’s online strategies focus on integrating the benefits of canned food and beverages into the broader online conversation. The goal of the online engagement programming is to become an ally and trusted resource for Wellness Mommas striving to keep their families healthy and happy – making them the hero.

The online platform, “Refreshingly Real,” went live in May 2018, joining four social media channels, which

opened in March 2018. Refreshingly Real targets Wellness Mommas with beneficial content and experiences that showcase the advantages of canned food and beverages and next-generation linings. Social media posts include easy solutions to meal preparation and entertaining, and information on the benefits of cans and next-generation linings.

Social media channels are: • Facebook:RefreshinglyReal,• Twitter:@RefreshingReal• Instagram:@RefreshingReal,and• Pinterest:RefreshinglyReal.

Refreshingly Real media channels have 2,401 followers. More than 550 posts have made 850,000 impressions and resulted in 37,700 engagements, for an impressive engagement rate of 4.4 percent.

In September, CMI hosted a “Farm -to-Can” influencer tour in the Indianapolis area. Nine influencers, who are moms writing about family, food and nutrition on their blogs, were recruited to participate. Throughout the three days, they were immersed in the canning process, so they could discover for themselves the value of cans and canned foods and beverages. The tour included a visit to a brewery, exploring a tomato farm and a tour of a tomato cannery. Registered Dietitian Shari

Steinbach discussed the nutrition of canned foods, after which the bloggers cooked and dined on a meal that incorporated canned foods into every dish.

In addition, the influencers learned how the industry’s commitment to innovation is paying off when it comes to meeting consumer preferences with the next generation of can linings. More than 90 percent of all food cans produced today use these next-generation linings, which was an enlightening statistic for the influencers on the tour.

After the tour, the bloggers each wrote a post about their experiences and shared recipes using canned ingredients to introduce their readers to the benefits of canned foods. The blog posts reached a combined audience of nearly 1.3 million, exposing them to the positive testimonials of all nine bloggers.

With a successful year of activities, CMI Trust in Cans and Can Linings initiative continues to engage, inform and empower target stakeholders in both cutting edge and traditional formats to ensure an informed dialogue and build trust in cans and next-generation can linings.

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Nine influencers who reach wellness mommas joined the Farm to Can tour to experience the innovative journey of the can.

The 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.

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*Ardagh Metal Packaging USABall CorporationBall MetalpackCrown Holdings, Inc.DS Containers, Inc.Mauser CorporationMetal Container CorporationSilgan Containers Corporation

*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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2018 Can Shipment Report

18

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. Starting in 2012, shipments of beverage cans includes unfilled can bodies produced, invoiced for sale and shipped from a location within the U.S. or U.S. controlled territory as well as Canada.

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:Atwopiecealuminumcontainercontainingbeer,nonalcoholicbeer,wine/spirits,orwine/spirit coolers.

Non-Alcoholic Beverages: A two piece aluminum beverage container. Includes all carbonated and non carbonated softdrinks,icedtea,tonic,waters,juicebeverages,milkordairy-basedbeverages,andisotonic/energydrinks.Fruit: Includes all conventional fruit items: apples, apple sauce, peaches, pears, pineapple, etc. and all citrus items.Doesnotincludefruitjuices,whichareintheFruit/VegetableJuicescategory.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 & MiscellaneousFoods.Doesnotincludevegetablejuices,whichareintheFruit/VegetableJuicescategory.

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.OtherFoods:IncludesBabyFood,Dairy,Fruit/VegetableJuices,Seafood,andMeat&Poultry,includingallmilkor 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, tennisballs,cements/dressings,chemicals,cleaners,cosmetics,dentists’supplies,disinfectants,dyes,ether,woodfillers,games/toys,germicides,gasoline,lubricatinggrease,grindingcompounds,insecticides,pencils,photographicsupplies,plasterofparis,floor/shoe/leather/othernonautomotivepolishes,body/cleanser/talcumpowders, 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.

* To avoid disclosure of individual company data, this category has been omitted.**Beginning in 2012 beverage can data includes US & Canadian shipments***Includes Baby Food, Dairy, Fruit/Vegetable Juices, Seafood, and Meat & Poultry cans.

% CHANGE 2016** 2017** 2018** 2017-18

Total Metal Cans Shipped 126,258 125,007 125,252 0.2%

BY MARKET For SaleBeverage * * * Food 25,111 24,753 24,479 -1.1% General Packaging 4,982 4,931 4,882 -1.0%For Own Use Beverage * * * Food 1,849 1,849 1,849 0.0%General Packaging 0 0 0 --

BY PRODUCT Beverage 94,316 93,474 94,042 0.6%Alcoholic 37,898 36,472 35,613 -2.4%Non-Alcoholic 56,418 57,002 58,429 2.5%

Food 26,960 26,602 26,328 -1.0%Coffee 44 46 35 -23.5%Fruit (Excluding Juices) 868 876 726 -17.0%Vegetables (Excluding Juices) 9,644 9,342 9,193 -1.6%Soups & Miscellaneous Foods 4,744 4,672 4,660 -0.3%Pet Food 7,464 7,676 7,923 3.2%All Other Foods*** 4,196 3,990 3,791 -5.0%

Food By ProcessTwo-Piece 18,109 18,530 18,755 1.2%Three-Piece 8,851 8,072 7,573 -6.2%

General Packaging 4,982 4,931 4,882 -1.0%Aerosol 3,934 3,910 3,869 -1.1% Other Nonfoods 1,048 1,021 1,013 -0.7%

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Metal Can Shipments: 2016-2018 (Millions of Cans)

2013

2014

2015

2016

2017

2018

46

42

43

44

46

35

Coffee

0 10 20 30 40 50

2013

2014

2015

2016

2017

2018

991

896

913

868

876

726

Fruit (Excluding Juices)

0 1 2 3 4 5 6 7 8 9 10

2013

2014

2015

2016

2017

2018

4,839

4,612

4,846

4,744

4,672

4,660

Soups & Miscellaneous Foods

0 1 2 3 4 5

2013

2014

2015

2016

2017

2018

9,903

9,827

9,513

9,644

9,342

9,193

Vegetables (Excluding Juices)

0 1 2 3 4 5 6 7 8 9 10

2013

2014

2015

2016

2017

2018

4,879

4,602

4,536

4,196

3,990

3,791

All Other Foods*

0 1 2 3 4 5

2013

2014

2015

2016

2017

2018

6,972

7,185

7,232

7,464

7,676

7,923

Pet Food

0 1 2 3 4 5 6 7 8 9 10

*Includes Baby Food, Dairy, Fruit/Vegetable Juices, Seafood and Meat & Poultry cans.

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Food Can Shipments: 2013-2018 (Millions of Cans)

Food Can Shipments: 2013-2018 (Millions of Cans)

2015*

68,823

24,392

93,215

0 20 40 60 80 100 120

2016*

68,917

25,399

94,316

0 20 40 60 80 100 120

2017*

67,302

26,172

93,474

0 20 40 60 80 100 120

*Includes US & Canadian shipments

0 1 2 3 4 5 0 1 2 3 4 5 0 1 2 3 4 5

2013

3,793

874

4,667

0 1 2 3 4 5

2014

3,839

897

4,736

0 1 2 3 4 5

2015

3,898

899

4,797

0 1 2 3 4 5

2016

3,934

1,048

4,982

2017

3,910

1,021

4,931

2018

3,869

1,013

4,882

Total Other Aerosol

Total Other Standard 12 Ounce

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General Line Can Shipments: 2013-2018 (Millions of Cans)

Beverage Can Shipments by Size: 2014-2017 (Millions of Cans)

Aluminum Can Shipments, Exports12 Ounce or Less 359.0 214.6 -40.2%Over 12 Ounce & Less Than 1 Gallon 314.8 207.7 -34.0%Over 1 Gallon 3,032.3 3,305.2 8.9%

Aluminum Can Shipments, Imports12 Ounce or Less 780.4 1,809.5 131.8%Over 12 Ounce & Less Than 1 Gallon 220.1 271.4 23.3%Over 1 Gallon 48.4 36.4 -24.5%

Steel Can Shipments, Exports 13.21 Gallons or Less (closed by crimping or soldering) 299.2 618.5 106.6% Steel Can Shipments, Imports13.21 Gallons or Less (closed by crimping or soldering) 162.6 190.1 16.71%

Aluminum and Steel Can Shipments: 2017-2018 (Millions of Cans)

Source: U.S. International Trade Commission

% CHANGE 2017 2018 2017-18

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Washington DC 20036-3101(t) 202.232.4677(f) 202.232.5756

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AkzoNobel Packaging CoatingsAlcoa Inc.Anheuser-Busch Packaging Group/ Metal Container CorporationArcelorMittal DofascoArdagh GroupBall CorporationBall MetalPackConstelliumCrown Holdings, Inc.Domino North AmericaEastman Chemical CompanyHenkel CorporationIndependent Can Company

INX International Ink CompanyMaterial Science CorporationMauser Packaging SolutionsNovelis Inc.Ohio Coatings CompanyPPG IndustriesRoeslein & AssociatesSeneca FoodsSherwin WilliamsSilgan ContainersStolle MachineryTri-Arrows Aluminum, Inc

AKZONOBEL PACKAGING COATINGSJulian Cass

ALCOA, INC.Rick Siegel

ANHEUSER-BUSCH PACKAGING GROUP/ METAL CONTAINER CORPORATIONRob HaasTim Popp

ARDAGH GROUPDavid WallClaude MarbachJennifer Cumbee

BALL CORPORATIONJohn HayesCarlos MedeirosDan FisherKathleen Pitre

BALL METALPACKJim Peterson

CONSTELLIUMRaphael Thevenin

CROWN HOLDINGS, INC.Tim DonahueJerry GiffordDjalma NovaesThomas Fischer

HENKELLaurie Andriate

INXDave Waller

NOVELIS, INC.David GillSpooner Ward

PPG INDUSTRIES, INC.Andrew CapozziTodd White

SHERWIN WILLIAMS Christopher KaralisSam Shoemaker

SILGAN CONTAINERSTom SnyderDavid Bevan

TRI-ARROWS ALUMINUM, INC.Henry GordinierMatt Bedingfield

23

CMI Member Companies

CMI Executive Committee

1730 Rhode Island Ave NWSuite 1000

Washington DC 20036-3101(t) 202.232.4677(f) 202.232.5756

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