The use of this photo is to illustrate the history of Crown. They began by their invention of the bottle cap in 1892 Prepared by Marjorie Wachowiak Franklin University Masters Program MCM Metrics and Analytics
Who is Crown ? Manufacturing leader of metal consumer packaging Global industrial platform, 139 factories in 41 countries Leader in technology for metal packaging 75% of sales outside USA Brand building part of Culture as illustrated in the logo
What is the Market Segment? Manufacture and/or distribute packaging products for the consumer goods market Primary product material- aluminum and steel packaging Primary-Metal cans for food and beverage market Closures,caps and crowns for food and beverage market Consumers responding to more emotional experiences through packaging
Who are the Customers?Primarily Food and Beverage suppliers to consumer goods market Coca-Cola Heinz Cadbury-Schweppes Nestle’ SC Johnson Unilever Proctor and Gamble
Growth Potential Growth anticipated to be 4% between 2009 -2013 Key areas of growth will be come from consumer convenience packaging As emerging countries economies grow, the demand for consumer packaging grows in theses countries Beverage can segment fastest growing segment in emerging countries High end brand growth in specialty packaging, consumers are willing to pay higher prices for enhanced experiences Technological advances in design, shape, print techniques and closures are offering increased value to the consumer Metal packaging remains the most effective packaging solution assuring safe and plentiful food supply Metal is the most recyclable material, consumers demand for sustainability solutions continues to increase
Competitive Financial Review The maturity of the consumer packaging business in the US and European markets reflect volatility in the past three year performances. A much deeper look needs to be taken to fully understand the competitive market. See next two charts.
Where Product is Produced Rexam is most competitive globally, Ball is working on partnerships in Southeast China which is not reflected in these numbers.
Segment Comparisons Crown diversified in 2006 to exclusively metal
Competitive Analysis Highly competitive market Innovation is critical to each company. Silgan approach concentrated in food and is focused on upscale growth. Balls approach involves technology and partnerships in foreign countries. Rexam and Crown continue to be the most mainstream and the most aggressive in global growth North America and European markets are mature The emerging markets are where the growth will come in the future. Currently only Rexam and Crown are aggressively pursing Rexam is restructuring the business, focusing on growth in emerging countries vs. Russia. This is impacting bottom line results in 2009
Why Crown? Innovation Global Leader Sustainability Competitive Enhancing the consumers experience
InnovationMaximize Brand Impact with advanced technology and distinctive design Shaping High End Selling Closures Convenience Print SuperEnd
Crowns Globalization Geographically diverse business with leadership in fastest growing regions Globalization strategy implemented in 2001 Continuous investments in specialized assets of manufacturing steel products
Global Breakdown Geographically diverse business with leadership in fastest growing regions Globalization strategy implemented in 2001 Continuous investments in specialized assets of manufacturing steel products
Why is sustainable important? Preserves natural resources Reduce the amount of energy, water and other resources associated with production Reduce associated emissions that occur through production Respect for the environment and the future of generations to come
Sustainability at Crown Materials used by Crown can be recycled indefinitely without loss of quality Recycling of aluminum takes only 5% of the energy to reproduce, steel only 25% to reproduce Development of unique packaging and kighter weight creating effiecienes in shipping Metal cans preserve food and beverages, requiring less waste Unique geometry of Crowns patented SuperEnd reduces metal use by 10% Continued R&D focus on sustainability
Crown is committed to continuous improvements in product design and manufacturing to provide the best outcomes for the human and natural environment both now and into the future.
Why Crown Now? The longterm globalization strategy that began in 2001 has positioned Crown to to become the dominant leader in the emerging countries As the emerging countries economies grow, so will will their sophistication in demand for product packaging The elimination of the plastics business in 2006 allows Crown to become the metal packaging expert. Focus in research, development and production, in one segment, will enhance Crowns importance to their customers
Crown Strategylongterm execution began in 2001 Continue capital expenditure investments in emerging markets Expand capacity to meet new demands globally Realign production to meet emerging countries demands and growth in sophistication Diversification of product offerings within steel packaging Meet customers changing needs Support multi national and regional customers Remain a leader in sustainability research and development
What Crown must continue to do? Consumer Focused, be aware never lose sight of changes in lifestyle that will drive changes in demand Customer, stay committed to helping them build their brands. Their success is Crowns success Competition, Rexam is aggressive and will bounce back watch their production in Mexico and any other new countries. Ball is an industry leader be aware of their developments in non metal category and apply learning's to metal. Silgan is ahead addressing the high end specialty market, watch them carefully innovations in customer experiences.
References Ball Corporation, (2009) Annual Report Crown Holdings Inc, (2009) Annual Report Crown Holdings Inc, (2008) Annual Report Rexam, (2009) Annual Report Silgan Holdings Inc, (2009) Annual Report Hoovers. (2010). Profile of Ball Corporation. Retrieved from http://0-premium.hoovers.com.olinkserver.franklin.edu/subscribe/co/factsheet.xhtml?ID=rfcrsrtsskctkf Hoovers. (2010). Profile of Crown Holdings Inc. Retrieved from http://0-premium.hoovers.com.olinkserver.franklin.edu/subscribe/co/factsheet.xhtml?ID=rfcrsrtsskctkf Hoovers. (2010). Profile of Rexam PLC. Retrieved from http://0-premium.hoovers.com.olinkserver.franklin.edu/subscribe/co/factsheet.xhtml?ID=rfcrsrtsskctkf Hoovers. (2010). Profile of Silgan Holdings Inc.. Retrieved from http://0-premium.hoovers.com.olinkserver.franklin.edu/subscribe/co/factsheet.xhtml?ID=rfcrsrtsskctkf
SBI. 2009, May). Sustainable (“Green”) packaging market for food and beverage worldwide, 2nd Edition. [Market report}. Retrieved from http://0-academic marketresearch.com.olinkserver.franklin.edu/product/display.asp?ProductID=1926700&prid=932324606