Geopolitical instability has caused a major supply shock in aluminium, resulting in limited access to printed cans, a source of significant concern for beverage manufacturers.
According to The Aluminium Federation (ALFED), conflict associated shutdowns have removed in excess of 1.5 million tonnes of primary aluminium from global circulation, driving material price to record highs and introducing significant volatility to the supply chain.
The shortage, which has caused panic buying in certain global locations, leaves UK manufacturers with printed can lead times stretching to October and beyond. As drinks manufacturers feel the impact of this supply pressure around aluminium, and the lack of availability of printed cans, the option of shrink sleeving is helping answer the question of how to maintain continuity during the ongoing geopolitical disruption.
Ian Wright, managing director at Prism eLogistics commented:
“Many beverage brands have been hit by the state of the aluminium market, and as a result we’re seeing a surge in demand for shrink sleeving. Rather than waiting on fully printed stock, manufacturers can use high-quality printed sleeves on blank cans to achieve the branded finish they need and avoid any disruption to retailer partners or consumers.
“As well as blank can sleeving, we’re also speaking to customers who want to repurpose existing can stock, which allows them to stay agile while the printed can supply chain catches up without investing in additional material. With the shortage set to continue for the next few months, we’re working hard to ensure we can provide alternative solutions to drinks manufacturers affected.”
As the situation evolves, organisations such as ALFED are liaising with the Department for Business and Trade to discuss potential commercial implications for UK businesses – concerned parties should speak to their relevant trade association for support.
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