New Delhi: Cola and beer companies in India are increasingly turning to glass and PET bottles for packaging as the West Asia conflict makes aluminium cans difficult and expensive to procure.
For Indian companies, prices of aluminium cans have risen by at least 20% for reasons directly tied to the West Asia crisis.
"We are seeing a shift come through in enquiries and in order books (for glass), and it has come earlier this year than the usual festive build-up," said Suraj Mehta, chief strategy officer, Hindusthan National Glass and Industries (HNGIL), a large glass packaging supplier to beverages, alcohol, cosmetics and pharmaceuticals. "Beer makers are reporting stronger demand for glass bottles when cans are not available, and some beverage companies have moved certain SKUs into PET and glass packaging formats."
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Industry executives said relying on the single packaging format of cans, which sell far more than glass or PET especially in urban markets, is a key risk and glass has turned a strong hedge.
"The war in the Middle East has delayed commissioning of additional capacity for can shells production in the country. So the need to continue importing cans to cover up the demand supply gap remains," said Vinod Giri, director general of Brewers Association of India, which represents United Breweries, ABInBev and Carlsberg as member companies. "The war has also seriously impacted global supply chains and related costs. Rising energy prices and the sliding rupee have led to an increase of up to 20% in the cost of empty can shells."
