Budweiser buyout could boost PET beer bottles

12 June 2008 22:55  [Source: ICIS news]

HOUSTON (ICIS news)--Belgian beer major InBev’s takeover bid for the US’ largest brewer, Anheuser Busch could “bring a whole new perspective” on the opportunities of polyethylene terephthalate (PET) to make inroads in North American beer packaging, a US plastic producer said on Thursday.

If the European firm, known for cutting costs in acquired businesses, were to enter the US beer bottling arena, it could lead to a boost in PET’s market share due to the material’s cost advantages over glass, said Frank Embs, global commercialisation manager for Invista.

InBev and Anheuser Busch did not immediately return requests for comment.

Growth of the US PET market for beer applications was projected to be fairly flat, with a total container demand below that of most European nations, Embs said.

However, with energy and transportation costs at record highs, a Belgian beer firm with more experience in PET might bring renewed interest for packaging that cuts costs on storage, production and transportation.

In past years, PET bottles were considered unsuitable for beer packaging due to the material’s permeability and the beverage’s sensitivity to oxygen and carbon dioxide.

Innovations have since extended the shelf life of beer in plastic containers to six months or more, but consumer acceptance in the US has been largely limited to sporting events and concert venues.

While the plastic containers have found a place in North American markets, US participants say PET’s total share of the beer bottle sector remains in the low single digits.

In a recent corporate citizenship report, InBev said PET was used to package 8.9% of its global domestic beer production in 2006.

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By: Landon Feller
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