This study analyzes the US market for beverages and beverage containers, including both captive and merchant container production. Container products covered include aluminum cans and bottles, steel cans, plastic containers (bottles, pouches and cans), glass bottles and paperboard containers (gabletop and bag-in-box cartons, aseptic boxes and composite cans). Beverage markets include carbonated soft drinks (including flavored and soda waters), milk and eggnog (including nonbeverage use of fluid milk), still and sparkling bottled water, fruit juices and drinks, isotonic sports beverages, other ready-to-drink (RTD) nonalcoholic beverages (iced coffee, iced tea, soy and other nondairy milks, energy drinks, flavored and enhanced waters, and noncarbonated and lightly carbonated soft drinks), beer and other malt beverages, wine (including wine-based coolers and hard ciders) and distilled spirits. Other than frozen and shelf-stable concentrated fruit beverages, all nonliquid beverages are excluded from the study, including coffee and tea (other than RTD types), powdered and condensed milk, and powdered fruit drinks and sports beverages. Also excluded are vegetable and tomato drinks, infant formula, packaged milk shakes and liquid nutritional supplements. In the case of containers, all secondary packaging (e.g., corrugated boxes and paperboard beverage carriers) is excluded, as are all bulk containers not intended primarily for in-home use. In bottled water, containers of over 2.5 gallons are excluded.

INTRODUCTION x

I. EXECUTIVE SUMMARY 1

II. MARKET ENVIRONMENT 4
General 4
Macroeconomic Outlook 5
Demographic & Household Trends 8
Age Distribution Patterns 10
Other Demographic Trends 13
Consumer Income & Spending Trends 14
Beverage Industry Overview 16
Packaging Trends 20
Vending Trends 24
Historical Market Trends 27
Pricing Trends 29
Environmental & Regulatory Issues 32
Recycling Trends 34
Regulatory Considerations 38
Technological Overview 40
World Markets 43
International Trade 46

III. MARKETS 49
General 49
Nonalcoholic Beverages 51
Carbonated Soft Drinks 53
Overview 54
Container Demand 57
Milk 62
Overview 62
Container Demand 66
Bottled Water 73
Overview 73
Container Demand 76
Fruit Beverages 82
Overview 82
Container Demand 86
Sports Beverages 93
Overview 93
Container Demand 96
Other Nonalcoholic Ready-To-Drink Beverages 98
Overview 99
Container Demand 103
Alcoholic Beverages 109
Beer 112
Overview 112
Container Demand 115
Wine 121
Overview 122
Container Demand 126
Distilled Spirits 132
Overview 132
Container Demand 135

IV. CONTAINER OVERVIEW 138
General 138
Container Demand 138

V. PLASTIC CONTAINERS 143
General 143
Resins 146
PET 147
HDPE & Other 150
Pouches 151
Markets 153
Carbonated Soft Drinks 156
Water 158
Fruit Beverages 162
Milk 165
Other 169
Sports Beverages 170
Other Ready-To-Drink Beverages 171
Distilled Spirits 173
Beer 174
Wine 176

VI. METAL CONTAINERS 177
General 177
Materials 180
Aluminum 181
Steel 185
Markets 187
Carbonated Soft Drinks 189
Beer 190
Other 193
Other RTD Beverages 195
Fruit Beverages 196
Bottled Water, Sports Beverages & All Other 197
Captive Versus Merchant Production 199

VII. GLASS BOTTLES 201
General 201
Markets 204
Beer 207
Wine 210
Other 212
Nonalcoholic 214
Alcoholic 218

VIII. PAPERBOARD CONTAINERS 220
General 220
Types 222
Markets 225
Milk 227
Fruit Beverages 229
Other 231

IX. INDUSTRY STRUCTURE 235
General 235
Industry Composition & Market Share 237
Metal 239
Plastic 240
Glass 241
Paperboard 241
Market Leaders & Competitive Strategies 242
Ball 243
Anheuser-Busch 244
Rexam 245
Owens-Illinois 246
Crown Holdings 247
Acquisitions & Divestitures 248
Manufacturing & Development 251
Marketing & Distribution 253
Integration 256
Cooperative Agreements 258
Company Profiles 262
Alcan Incorporated 263
Alcoa Incorporated 265
Altria Group Incorporated 267
Amcor Limited 268
Ampac Packaging LLC 271
Anchor Glass Container Corporation 272
Anheuser-Busch Companies Incorporated 274
Ball Corporation 276
Blue Ridge Paper Products Incorporated 281
Captive Plastics Incorporated 282
CCL Industries Incorporated 283
CKS Packaging Incorporated 285
Coca-Cola Enterprises Incorporated 286
Consolidated Container Company LLC 288
Constar International Incorporated 290
Coors Brewing Company, see Molson Coors Brewing
Crown Holdings Incorporated 293
DairyPak, see Blue Ridge Paper Products Incorporated
Dean Foods Company 296
DuPont (EI) de Nemours 297
Exal Holdings BV 299
Gallo (E&J) Winery Incorporated 301
Graham Packaging Holdings Company 302
International Paper Company 306
Kapak Corporation, see Ampac Packaging LLC
Kraft Foods Global Incorporated, see Altria Group
Liquid Container/Plaxicon Company 309
Longhorn Glass Corporation, see Anheuser-Busch
Mayfield Dairy Farms, see Dean Foods Company
Metal Container Corporation, see Anheuser-Busch
Molson Coors Brewing Company 310
Novapak Corporation, see PVC Container Corporation
Novelis Incorporated 312
Owens-Illinois Incorporated 313
Pechiney SA, see Alcan Incorporated
Plastipak Holdings Incorporated 316
Pretium Packaging LLC 318
PVC Container Corporation 319
Rexam plc 320
Rocky Mountain Bottle Company, see Molson Coors Brewing Company and Owens-Illinois
Rocky Mountain Metal Container LLC, see Ball Corporation and Molson Coors Brewing Company
Saint-Gobain 323
Scholle Corporation 325
SIG Holding Limited 326
Silgan Holdings Incorporated 328
Sonoco Products Company 329
Southeastern Container Incorporated, see Coca-Cola
Enterprises Incorporated
Tetra Laval International SA 331
Tianjin New World Glass Containers Company Limited,
see Owens-Illinois Incorporated
Vitro American National Can SA de CV, see Rexam plc
Vitro SA de CV 334
Western Container Corporation, see Coca-Cola
Enterprises Incorporated

LIST OF TABLES

TABLE NUMBER PAGE

SECTION I -- EXECUTIVE SUMMARY
Summary Table 3

SECTION II -- MARKET ENVIRONMENT
1 Macroeconomic Indicators 8
2 Population & Households 10
3 Consumer Income & Spending 16
4 Packaged Beverage Production 19
5 Packaging Shipments 24
6 Beverage Vending Demand 27
7 Beverage Container Demand, 1995-2005 29
8 Beverage Container Pricing 32
9 Soft Drink Container Recycling Rates 38

SECTION III -- MARKETS
1 Beverage Container Demand by Market 50
2 Nonalcoholic Beverage Production by Type 53
3 Packaged Carbonated Soft Drink Production by Material 56
4 Carbonated Soft Drink Container Demand by Material 58
5 Packaged Milk Production by Material 65
6 Milk Container Demand by Material 67
7 Nonbulk Packaged Water Production by Material 76
8 Bottled Water Container Demand by Material 77
9 Packaged Fruit Beverage Production by Material 85
10 Fruit Beverage Container Demand by Material 87
11 Sports Beverage Production by Material 95
12 Sports Beverage Container Demand by Material 98
13 Other Ready-To-Drink Packaged Beverage Production by Material 102
14 Other Ready-To-Drink Beverage Container Demand by Material 104
15 Alcoholic Beverage Production by Type 111
16 Packaged Beer Production by Material 114
17 Beer Container Demand by Material 116
18 Packaged Wine Production by Material 125
19 Wine Container Demand by Material 127
20 Packaged Distilled Spirits Production by Material 134
21 Distilled Spirits Container Demand by Material 137

SECTION IV – CONTAINER OVERVIEW
1 Beverage Container Demand by Material 141

SECTION V -- PLASTIC CONTAINERS
1 Plastic Beverage Container Demand by Type 145
2 Resin Use in Plastic Beverage Containers 147
3 Plastic Beverage Container Demand by Market 155
4 Plastic Carbonated Soft Drink Container Demand 158
5 Plastic Water Container Demand 162
6 Plastic Fruit Beverage Container Demand 165
7 Plastic Milk Container Demand 169
8 Other Plastic Beverage Container Demand by Market 170

SECTION VI – METAL CONTAINERS
1 Metal Beverage Container Demand 180
2 Metal Beverage Container Demand by Material 181
3 Metal Beverage Container Demand by Market 188
4 Metal Carbonated Soft Drink Can Demand 190
5 Metal Beer Container Demand 193
6 Other Metal Beverage Container Demand by Market 195
7 Captive Versus Merchant Metal Beverage Container
Demand 200

SECTION VII -- GLASS BOTTLES
1 Glass Beverage Container Demand by Market 206
2 Glass Beer Bottle Demand 209
3 Glass Wine Bottle Demand 212
4 Other Glass Beverage Bottle Demand by Market 213

SECTION VIII -- PAPERBOARD CONTAINERS
1 Paperboard Beverage Container Demand by Type 225
2 Paperboard Beverage Container Demand by Market 226
3 Paperboard Milk Container Demand 229
4 Paperboard Fruit Beverage Container Demand 231
5 Other Paperboard Beverage Container Demand by Market 234

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SECTION IX -- INDUSTRY STRUCTURE
1 US Beverage Container Sales by Company, 2005 238
2 Selected Acquisitions & Divestitures 250
3 Selected Cooperative Agreements 260


LIST OF CHARTS

CHART NUMBER PAGE

SECTION II -- MARKET ENVIRONMENT
1 Packaged Beverage Production by Type, 2005 20

SECTION III -- MARKETS
1 Beverage Container Demand by Market, 2005 51
2 Carbonated Soft Drink Packaging by Material 57
3 Milk Packaging by Material 66
4 Fruit Beverage Packaging by Material 86
5 Other Nonalcoholic Ready-To-Drink Beverage Packaging
by Material 103
6 Beer Packaging by Material 115
7 Wine Packaging Demand by Material 126
8 Distilled Spirits Packaging by Material 135

SECTION IV -- CONTAINER OVERVIEW
1 Packaged Beverage Production by Material, 2005:
Volume Versus Units 142

SECTION V -- PLASTIC CONTAINERS
1 Plastic Beverage Container Demand by Market, 2005 155

SECTION VI -- METAL CONTAINERS
1 Metal Beverage Container Demand by Market, 2005 188

SECTION VII -- GLASS BOTTLES
1 Glass Beverage Container Demand by Market, 2005 207

SECTION VIII -- PAPERBOARD CONTAINERS
1 Paperboard Beverage Container Demand by Market, 2005 227

SECTION IX -- INDUSTRY STRUCTURE
1 US Beverage Container Market Share, 2005 243