Aluminum sheet producer sees bump in sales as World Cup fever boosts national consumption
Novelis, the world leader in aluminum rolling and recycling, estimated today that thirsty soccer fans in Brazil will push sales of aluminum beverage cans past the two billion mark over the four weeks of the 2014 FIFA World Cup, representing a 35 percent increase over the same period last year.
This represents a boost in business for Novelis, the leading supplier of aluminum can stock for the beverage can market in South America. Novelis also owns and operates Brazil's largest aluminum recycling facility providing closed-loop recycling capacity for those used beverage cans. Brazil has an astounding 98 percent recycling rate for beverage cans and is the world leader in aluminum can recycling.
According to studies conducted by Nielsen, during a typical World Cup, the consumption of beer alone could reach 20 percent above normal levels in households where people are watching the games. Combined with record consumption of soft drinks and other beverages, Novelis estimates total can consumption will surpass the two billion mark.
"The World Cup has caused an unusual uptick in our winter sales, adding the equivalent of a peak summer month's sales and creating our highest winter sales season on record for beverage can sheet," said Tadeu Nardocci, Senior Vice President of Novelis and President of Novelis South America.
The period from June 12 to July 13 is expected to increase overall beverage can sales in Brazil by four percent for the year. That is in addition to the six-to-nine percent projected growth for the can market overall in Brazil, one of the world's fastest growing economies. During the entire year of 2013, 21.5 billion cans were sold in Brazil, according to the Brazilian Association of Highly Recyclable Cans' Manufacturers (ABRALATAS).
In order to meet the growing demand for aluminum into the next decade, Novelis recently completed a $340 million expansion of its aluminum rolling and recycling operations in Brazil, increasing its annual production capacity of aluminum can sheet from 400,000 to 600,000 metric tons. The investment represents the largest expansion of Novelis in South America over the past decade and further positions the company as the global leader in aluminum rolled products.
