Crown Holdings, Inc. announced that its Brazilian subsidiary CROWN Embalagens S.A., plans to build its sixth beverage can plant in Brazil. The new two-line facility will produce two-piece aluminum cans in multiple sizes and have annual capacity of 2.4 billion cans when fully operational. The first line is expected to begin production in the second quarter of 2022, followed by the second line in the fourth quarter of 2022.
The new plant will be located in Minas Gerais State, southeast Brazil to meet the growing demand in the region for beer and soft drink cans. Crown has been operating in Brazil since 1942 and has a strong presence with two-piece aluminum beverage can plants in Cabreúva (São Paulo State), Estância (Sergipe State), Ponta Grossa (Paraná State), Rio Verde (Goiás State), Teresina (Piaui State) and a beverage end plant in Manaus (Amazonas State). The new plant will expand Crown’s annual production capacity in Brazil to 13.3 billion cans.
“Brazil is an important growth market for us and our partner, Évora S.A. This expansion will help meet the country’s increased demand for beverage cans and demonstrates Crown’s continuing commitment to grow with our customers,” commented Djalma Novaes, President of Crown’s Americas Division. “The aluminum beverage can is perfect for the Brazilian market; it is recyclable and sustainable, is shipped easily and most efficiently preserves the quality of the beverage product for the ultimate consumer.”
Completition of wind power transition advances Company’s global operations to 27.5 % renewable electricity, aligns with Twentyby30 and RE100 commitments
Crown Holdings, Inc. is now operating all 14 of its beverage can plants in the U.S. and Canada on renewable energy. It is the first metal packaging manufacturer to achieve this milestone, which is the result of a 15-year wind power Virtual Power Purchase Agreement (VPPA) with Longroad Energy. With the VPPA in effect and all of Crown’s manufacturing facilities in the U.K. already completing a similar transition, 27.5 % of the Company’s global operations are now using renewable electricity.
This accelerated usage of alternative power sources serves as a major step in Crown’s plan to employ 60 % renewable electricity by 2030, 90 % by 2040 and 100 % by 2050—targets established in Crown’s Twentyby30 initiative, a comprehensive sustainability program that addresses climate issues among other areas of urgent global concern. The action also supports Crown’s Twentyby30 goal to decrease Scope 2 greenhouse gas (GHG) emissions within its global operations, targeting a 50 % combined reduction in absolute Scope 1 (fuel) and Scope 2 (electricity) emissions. The transition reflects Crown’s commitment to the RE100, which is led by The Climate Group and CDP and focuses on accelerating the transition to zero carbon grids at global scale.
Relying on a Texas-based wind farm, the VPPA generates more than 440,000 MWhs of electricity, helping prevent over 310,000 metric tons of carbon emissions each year—the equivalent to taking at least 67,000 passenger vehicles off the road for one year. The renewable power offsets 100 % of the energy usage within Crown’s U.S. and Canadian beverage plants, which account for over 20 % of the Company’s global Scope 2 greenhouse gas emissions.
The Can Manufacturers Institute (CMI) will make grants available in 2021 to Material Recovery Facilities (MRF) for aluminum can capture equipment, which will ensure used beverage cans (UBC) are accurately sorted, sold and recycled. Capturing and recycling aluminum cans provides a positive environmental and economic impact as metal recycles forever and UBCs are typically made into new cans.
Aluminum beverage cans currently provide critical revenue to MRFs. A CMI-funded study concluded that without the revenue from UBCs, most MRFs, which are vital to the U.S. recycling system since they sort single stream recyclables, would not be able to operate. But, while UBCs are typically the most valuable commodity in the residential recycling stream, up to 25 percent of UBCs are missorted at a typical MRF. These missorted cans can be captured with the right equipment, which would pay for itself with the additional revenue.
Directly funded by aluminum beverage can manufacturers Ardagh Group and Crown Holdings, the grant program will provide clear examples of the efficacy and revenue impact that additional aluminum can capture equipment can have for a MRF. The results are expected to encourage more MRFs to invest in additional aluminum can capture equipment. Further, Ardagh Group and Crown Holdings are exploring additional recycling programs that they, along with other partners, can implement to leverage additional aluminum can capture equipment in MRFs.
“With this new grant program, the aluminum beverage can industry is demonstrating its commitment to building on the industry’s leading beverage packaging recycling rates,” said CMI Vice President of Sustainability Scott Breen. “Capturing these missorted cans will result in significant additional revenue for recyclers and deliver significant carbon emissions reductions from greater use of recycled aluminum.”
As the next step in its sustainability journey, Crown Holdings, Inc. has signed onto the Science-Based Targets initiative, a project that aims to spur corporate climate action in the transition to a low-carbon economy. To join the initiative, Crown will set specific goals for reducing greenhouse gas emissions in alignment with the Paris Agreement of 2015, through which international governments collectively pledged to limit the global temperature increase to 1.5 degrees Celsius.
In preparation for setting these ambitious new targets, Crown’s Chief Executive Officer, Timothy Donahue, has signed the commitment letter confirming Crown will develop new goals to be reviewed and approved by the SBTi committee. Crown plans to announce its goals in early 2020 and report on progress annually. In the interim, the Company continues to work toward achieving its 2020 Sustainability Goals and making additional strides in its ongoing commitment to the RE100 initiative.
“We have made tremendous progress toward our 2020 Sustainability Goals, which include a 10 % GHG reduction goal,” said John Rost, Ph.D., Vice President, Global Sustainability and Regulatory Affairs at Crown. “Committing to and striving to achieve science-based targets is the next natural progression for the Company. Our culture of safety, efficiency and resource conservation as well as the unrivaled sustainability profile of our primary product – metal packaging – will continue to play a critical role in our ability to meet our next set of milestones.”
The Company joins RE100 and commits to transition to 100 % renewable electricity by 2050
As a major step toward fulfillment of its pledge to the RE100 initiative, which focuses on accelerating the transition to zero carbon grids at global scale, Crown Holdings, Inc. has signed a 15-year Virtual Power Purchase Agreement (VPPA) with Longroad Energy to utilize wind power in all of its U.S. and Canadian beverage can plants starting on July 1, 2020. The new program will rely on a wind farm based in Knox County, Texas to generate over 400,000 MWhs of electricity. The renewable power will offset 100 % of the energy usage within Crown’s U.S. and Canadian beverage plants, which account for over 20 % of the Company’s global Scope 2 greenhouse gas emissions. This transition serves as the first phase of Crown’s RE100 plan, which anticipates that the Company will run 100 % renewable electricity by 2050. The RE100 initiative is led by The Climate Group and CDP.
One of the first milestones on the Company’s journey will be achieving 30 % renewable electricity by 2020. To accomplish this goal, Crown is exploring renewable options in other countries, including Mexico, which runs on a different electricity grid than the U.S. and Canada and would serve as the final portion of a complete North American renewable energy program by RE100 standards. The Company’s next goal will be reaching 50 % renewable energy utilization by 2030.
“Completely transitioning our U.S. and Canadian beverage can plants to renewable electricity is the latest example of our willingness to take action when it comes to sustainability,” stated Timothy J. Donahue, President and Chief Executive Officer of Crown. “From innovations to our products, which use infinitely recyclable materials, to our industry-leading rankings with CDP, to our manufacturing processes, we will continue exploring opportunities that allow us to make meaningful progress.”
The adoption of wind power also supports Crown’s ongoing 2020 sustainability goals, which use 2015 production levels as a baseline year from which to reduce energy consumption by 5 % and emissions by 10 % per billion standard units produced. Crown has already met its energy goal and is well on its way to meeting its emissions goal, achieving 76 % of the goal within two years.
To deliver new beverage options to consumers seeking healthier alternatives, Danone Waters Brazil has partnered with Crown Holdings, Inc. to launch its newest brand, 4U by Danone. Debuting in the Brazil market in November, the 4U line features two carbonated juices and two flavored teas, all made with 100 % natural ingredients. Two different sizes of sleek style cans from Crown, along with special ink finishes and colorful imagery, offer vibrant, eye-catching package designs that reflect the healthy, fresh blends of the 4U beverages.
With an uptick in global awareness for health, wellness and sustainability, the beverage market has seen a growing consumer preference for alternative, more natural options. The 4U brand helps Danone address this burgeoning market within Brazil and diversify its portfolio, which includes dairy products and water, and reach new consumers.
The launch of the 4U line brings four new flavorful beverage options to the market. Danone’s carbonated juice, developed under the sub-brand True 4U, is available in White Grape and Citrus and packed in 269 ml (9.1 ounce) sleek style beverage cans. The sub-brand Tea 4U features two flavors, Black Tea – Hibiscus and Berry and Lemon Grass and Citrus, and is available in 310 ml (10.5 ounce) sleek style cans. All four beverages are completely natural, containing no preservatives or artificial coloring.
Danone chose the beverage can for its durability, recyclability and decorative options. The format’s premium appeal, portability and increasing popularity in the Brazilian market were also important factors. Danone collaborated with Crown due to the Company’s reputation for sustainable products and practices and its close relationships with partners.
“Placing Danone on the forefront of Brazil’s growing natural beverage market required a strategic packaging partner that could accurately capture the new 4U brand and help us make our mark in this product sector,” said Rafael Ribeiro, Head of Marketing and Sales at Danone. “Collaborating with Crown allowed us to venture into uncharted territory and bring an exciting, fresh product line to our customers with the confidence that our brand would be represented in a high-quality, sustainable format.”
For added shelf appeal, Crown used two distinct sizes of its sleek style cans. Part of the Company’s diverse product portfolio, the sleek style cans bring a level of exclusivity to the brand and provide greater differentiation between the carbonated juice and tea varieties. The cans’ graphics feature bright colors to convey the bold flavors and fresh ingredients of the natural beverages. An all-over matte finish has been applied to the Tea 4U cans, creating a tactile experience for consumers.
“It is always an honor to help our customers bring a new concept to market, and we were thrilled to support Danone with the launch of the 4U line,” said Altair Frulane, Commercial Director at Crown Embalagens Metálicas da Amazônia S/A, a subsidiary of Crown. “Our collaboration with Danone involved careful ideation and planning that resulted in a striking product that is true to the brand’s messaging and goals. It is this type of project that allows our expertise and creativity, both regionally and globally, to shine.”
