Aluminum roller and recycler Novelis is betting on more growth in aluminum beverage packaging.
“We continue to see strong demand for aluminum beverage packaging sheet,” said President and CEO Steve Fisher in the company’s quarterly earnings release Monday.
In the quarter ended June 30, beverage packaging sales totaled nearly $2.5 billion, up more than 22% year over year. The Atlanta-based company’s higher beverage packaging shipments across regions helped offset lower automotive and specialty shipments, amounting to a more than 1% year-over-year increase in rolled product shipments. There were also headwinds from higher scrap prices and a net-negative impact from tariffs.
While these results were for the company’s first quarter of fiscal year 2026, Novelis noted that 60% of its fiscal year 2025 shipments were in beverage packaging. The company projects a 4% compound annual growth rate in beverage packaging between 2024 and 2030 across most geographies, driven by sustainability trends.
The company is making progress on a greenfield rolling and recycling plant in Bay Minette, Alabama, a $4.1 billion project expected to have 600 kilotons of capacity. Novelis anticipates 70% of that, or 420 kt, will go toward beverage packaging, with capacity contracted. The company is currently installing equipment and expects the facility will be operational in the second half of calendar year 2026.
Novelis’ major packaging customers include beverage giants Anheuser-Busch InBev, PepsiCo and various Coca-Cola bottlers, as well as canmakers Ardagh, Ball and Crown Holdings, all of which recently reported increases in shipments. Ball reportedly accounted for 15% of Novelis’ quarterly net sales
Novelis, a subsidiary of metals company Hindalco Industries, was pursuing an IPO early last year but postponed that effort indefinitely “due to market conditions.”
