Glass bottle manufacturer Ardagh will close its Houston plant in July and lay off 220 workers, the Houston Chronicle reported.
Ardagh spokesperson Gina L. Behrman told the outlet that the decision followed a review of “current market conditions.”
“The affected customer base will be supplied from Ardagh’s remaining glass manufacturing facilities across the U.S.,” she continued.
Ardagh operates 12 glass manufacturing plants in the U.S. and 27 international facilities, per the company’s website. The Houston plant was acquired by Ardagh in 2021 from long-time customer Anheuser-Busch InBev (A-B). A-B operates a neighboring production facility.
Cans have steadily taken share from bottles within the beer category. Bump Williams Consulting president Dave Williams estimated the split at around 70/30 in favor of cans at this point.
In the rolling 52-week period through June 15, off-premise dollar sales of bottles have declined -3.5%, to around $15 million, in NIQ tracked channels (xAOC+convenience+liquor). 3 Tier Beverages consultant Mary Mills told Brewbound that bottles hold around a 31% share of total beer, down from 32% share in 2023, 34% share in 2021 and 36% share in 2020.
Looking at craft dollar share in NiQ data, the split through Q1 2024 stood at 72.7% cans versus 27.2% bottles, with craft cans gaining +3.2% share from bottles.
Williams told Brewbound: “Lots of factors have contributed to the push of cans, but I think some of the biggest reasons beyond the growing consumer demand for the format is how much easier the packages are to ship, stack and store vs. bottles. The financial benefit for brewers has been a bonus/silver lining to this growing can movement.”
Volume drivers such as lagers and IPAs have driven the increased turn toward can packaging as consumers seek convenience, portability and sustainable package formats.
Nevertheless, Williams said some brands are viewed as “essential bottle brands,” such as Sierra Nevada Pale Ale, Samuel Adams Boston Lager and seasonal offerings, as well as special releases such as Goose Island Bourbon County and New Holland Dragon’s Milks.
“So the format isn’t ever going to disappear completely,” he added.