Crown Holdings Sees 15% Drop in Brazil and Mexico Can Volumes as Aluminum Costs Surge 54%

Beverage packaging manufacturers faced a mix of challenges and opportunities in the third quarter as shifting consumer preferences, economic pressures, and regional policy changes influenced demand for canned drinks. Major can makers Crown Holdings and Ardagh Metal Packaging reported declines in beverage can volumes in the Americas, while seeing growth in Europe.

Crown Holdings experienced a 5% drop in Americas beverage volumes during the third quarter, following several quarters of strong growth, including a 10% increase in the same period last year. The decline was driven by a sharp 15% decrease in Brazil and Mexico, according to CEO Tim Donahue. He cited weaker consumer spending among Latino populations and severe seasonal weather in Brazil as key factors. Despite these setbacks, Donahue said October shipments had improved and expressed confidence in the resilience of beverage cans. He emphasized that Crown has managed to pass increased aluminum costs—up 54% over the past 10 months—onto customers through contractual agreements, maintaining stable margins. Donahue remains optimistic about future growth, predicting higher volumes by 2026 and highlighting the enduring appeal of canned beverages as affordable pleasures during tough economic times.

Ardagh Metal Packaging reported a global 1% year-over-year dip in beverage can shipments for the third quarter. The company saw a 2% increase in Europe but a 3% decline in the Americas. North American shipments rose by 1%, but Brazilian volumes fell sharply by 17%. CEO Oliver Graham noted weakness across both beer and soft drink categories. However, he said demand for nonalcoholic canned beverages remains strong in North America, and Ardagh expects full-year shipment growth of around 3%. Graham also pointed out that cans continue to outperform other packaging types for their customers. The company is planning to retrofit production lines to accommodate different can sizes, aiming to stay flexible amid changing market demands.

Market research from Circana indicated that nearly half of Americans planned to reduce their alcohol consumption in early 2025. This trend has prompted major beer distributors to adjust their strategies. Molson Coors announced a major restructuring that will cut about 400 jobs—9% of its salaried workforce—in the Americas by year-end. The company plans to focus more on premium mixers, nonalcoholic beverages, and energy drinks going forward.

Constellation Brands, known for products like Modelo, reported lower volumes and a challenging socioeconomic environment that reduced consumer demand across the industry. Net sales dropped by 7%, with beer sales down nearly 3%. Heineken also saw its Q3 net revenues fall more than 5% in the Americas as beer volumes declined by over 7%. Despite these declines, Heineken CFO Harold Broek said cans remain the preferred packaging format among consumers and are driving current growth.

In nonalcoholic markets such as soft drinks, energy drinks, and protein drinks, beverage companies are experimenting with new packaging strategies to address consumer needs and price sensitivity. Coca-Cola CEO James Quincey said the company has remained flexible amid ongoing challenges, adapting plans and investing for growth. Coca-Cola’s Q3 revenues rose by 5%, supported by strategic packaging initiatives.

In Brazil, Coca-Cola tested duo packs for Coca-Cola Zero Sugar to better connect with meal occasions, according to Chief Operating Officer Henrique Braun. The company is also introducing new packaging formats designed to help consumers manage daily expenses. Coca-Cola has expanded its mini can offerings—a segment now generating $1 billion in revenue—and is working closely with bottlers to adapt to evolving consumer preferences.

As beverage companies navigate these shifting trends, can makers are adjusting production strategies and product offerings to meet changing demand across regions and categories. The industry continues to face uncertainty but remains focused on innovation and flexibility as it responds to both economic pressures and evolving consumer tastes.