The year of the CANCAN MANUFACTURERS INSTITUTE 2016/2017 ANNUAL REPORT

CanManufacturersInstitute

of theCANThe year

CAN MANUFACTURERS INSTITUTE 2016/2017 ANNUAL REPORT

162

Table ofContentsAnnual Report

04 Images from 2016

06 CMI Mission & Goals

07 Letter from the President

08 Sustainability

10 Scientific, Regulatory and Legislative

13 Cans Get You Cooking

14 Building Trust in Cans and Can Linings

16 Beverage Can Program

18 The Great American Can RoundUp (GACR)

19 Social Media

Can Shipments Report

20 About this Report

21 Definitions

22 Metal Can Shipments 2014-2016

23 Food Can Shipments 2011-2016

24 General Line Can Shipments: 2011-2016

25 Aluminum Can Shipments, Exports: 2015-2016

25 Aluminum Can Shipments, Imports: 2015-2016

25 Steel Can Shipments, Exports: 2015-2016

25 Steel Can Shipments, Imports: 2015-2016

26 CMI Executive Committee

27 CMI Member Companies

27 Subscription Information

3

04

08

05

01

09

12

10

14 13

02

4

01

020304

05

06

07

0809

101112

1413

15

16

Howard Heckes, The Valspar Corporation

and John Hayes, Ball Corporation

Samuel Shoemaker, The Valspar Corporation

Gary Wygant, Rexam and Mike Wells, Rexam

Scott Burya, AkzoNobel Packaging Coatings

and Paul Chenier, GCP Applied Technologies

David Gill, Novelis; Shawn Peck, PPG Industries

and Matt Bedingfield, Tri-Arrows Aluminum

Tom Snyder, Silgan Containers; Mike Purnell,

U.S. Steel and Dave Bevan, Silgan Containers

Jeffrey Fernandez, Signode and

Al Gans, Ball Corporation

Jim McCaulley, Eastman Chemical

Carolyn Takata, Silgan Containers

and Don Farrington, Constellium

Kathleen Pitre, Ball Corporation

Laurie Andriate, GCP Applied Technologies

Chris Karalis, Valspar Corporation

Phil Leidig, Samuel Strapping Systems

John Rost, Crown Holdings and Tom

Mallen, The Valspar Corporation

Dave Waller, INX International Inks; Djalma

Novaes, Crown Holdings; John Rost,

Crown Holdings; Emily Mullins, Henkel

and Tim Donahue, Crown Holdings

John Hayes, Ball Corporation; Greg Bengston,

AkzoNobel Packaging Coatings and Robert

Budway, Can Manufacturers Institute

Imagesfrom 2016

06

11

1615

07

03

5

The Can Manufacturers Institute’s mission is to

represent its members’ interests before state and

federal legislative and regulatory bodies. Additionally,

CMI provides members with market development

programs within the parameters of antitrust law.

To fulfill these tasks in 2016, CMI strengthened

its commitment to the goals listed below.

CMI’s dedication to these goals is evident in

all that has been accomplished this year. This

Annual Report provides a summary of the past

year’s accomplishments, as well as a look at our

strategy to fulfill these goals in the coming year.

To provide the industry with effective representation

in congressional administrative policymaking on

those issues with specific impact on or important

to the overall success of the can making industry.

To promote the industry with trade, local

and national media and within state and

local governments by publicizing overall can

benefits and industry achievements.

To collect and disseminate industry statistics

to provide an accurate assessment of the

industry’s production, and to collect and analyze

consumer market information to promote the

economic welfare of CMI’s members.

To serve, on an as needed basis, as a

facilitation resource for the discussion

and resolution of joint industry technical,

operational or regulatory challenges.

mission &GOALS

CMI

01020304

6

In thinking about this year’s letter, I reflected on my many

years at CMI and the importance of core principles that have

guided the association. Foremost among these principles is

that CMI exists to serve and provide value to its members.

From a practical standpoint, this involves establishing and

sustaining effective legislative and communications programs

that protect market access and create opportunities for the

industry.

Like all organizations, CMI experiences cycles. This process

involves the creation of new programs, which inevitably

generate excitement and opportunity for the industry. This

is a normal part of association life as people, issues and

markets change, and we predictably transform and create

new programs to satisfy the desires of our membership.

As we undertake transformation again, communication among

the members and with CMI staff is essential for the creation

of valuable, sustained and successful programs. Continuous

dialogue is necessary to create value for the membership and

maintain support of CMI’s programs to keep the association

moving forward. I know that 2017 will be a year of continued

conversation, and I look forward to leading the association in

a newly, agreed upon direction that will ensure that the can

manufacturing industry prospers.

Best Regards,

Robert Budway, President

from the

mission &

PRESIDENT

Letter

7

Sustainability

8

The Recycling Partnership (TRP) The Recycling Partnership has grown its

membership four times in the last two

years, most recently welcoming Target,

DanoneWave, Sonoco and Dow Chemical

as its newest funding partners. Since

2014, The Partnership has reached 14.5

million households and helped to divert

115 million pounds of recyclables from

landfill. New 2016 and 2017 engagements

include Santa Fe, New Mexico; Denver,

Colorado; Chicago, Illinois; Portland,

Maine; Saint Paul, Minnesota and

the states of Ohio, Tennessee and

Massachusetts. CMI continues to

function as the program’s chair.

Aluminum Beverage Cans: The Most Recycled Drinks Pack in the World

Alongside sister associations in Europe

and Brazil, CMI is working on a study

to certify that aluminum beverage cans

are the most recycled drinks package in

the world. Resource Recycling Systems

will provide third-party certification

of the data and help fill in the gaps.

Sustainable Packaging Coalition’s Recycling Access Study

Alongside the Aluminum Association,

Steel Recycling Institute, Consumer

Specialty Products Association, Glass

Packaging Institute, Carton Council and

the Society of the Plastics Industry and

North American PET Plastics Industry,

CMI funded a study to determine

recycling access and availability rates for

the common suite of containers, including

steel and aluminum aerosols. According

to the Federal Trade Commission’s

Green Guides, 60 percent of the U.S.

population must be able to recycle

each container for it to be deemed

recyclable. The study concluded that

all aluminum and steel cans, including

aerosols, are widely recyclable.

Oregon Bottle Bill Increase The Oregon Liquor Control Commission

voted to increase the Oregon bottle

deposit/refund from five cents to ten

cents, effective April 1, 2017. The

increase is a result of a bill passed in

2011 that included a provision to allow

an increase in the deposit refund

value from five cents to ten cents after

January 2016 if the redemption rate fell

below 80 percent for two consecutive

years. The current rate is 68 percent.

Beverage categories covered by the

5-cent deposit have until September

30, 2018, to change on-package

labeling from 5-cents to 10-cents.

Beverage categories being added

to the program, and not previously

included, have until December 31, 2018,

to show the 10-cent redemption rate

on-package. New beverage categories

include tea, coffee, hard cider, fruit

juice, kombucha and coconut water.

CannedWater4Kids CMI is on the board of

CannedWater4Kids (CW4K), the non-

profit charity organization that brings

clean, safe water to children worldwide

by raising money to build and maintain

infrastructure for safe and clean

drinking water and delivering water in

aluminum beverage cans when those

facilities are damaged or unavailable.

CW4K is proud to report that it supplies

water to several U.S. National Parks,

including Denali National Park in Alaska,

Yosemite National Park in California and

Olympic National Park in Washington.

CW4K also sent several truckloads

of water to Flint, Michigan, during its

water crisis. The program recently built

its seventh water well in the Lusaka

Capital of Zambia in Central Africa.

AMERIPEN AMERIPEN, the American Institute for

Packaging and the Environment, formed

in 2011 to become the recognized

North American industry and trade

organization to influence environmental

and other emerging packaging issues.

In 2016, AMERIPEN restructured and will

focus on: communications to promote

the value of packaging; government

affairs and lobbying for effective solid

waste management strategies; circular

economy policies; food waste and

metrics for recovery. CMI is part of

AMERIPEN’s Technical Advisory Group,

which is made up of association and

other non-paying members, and will

continue to advocate for metal packaging

within AMERIPEN committees.

Canstruction Canstruction is a national nonprofit

that hosts annual design and building

competitions to construct structures

out of canned goods and donate

those goods to local food banks. CMI

renewed its national sponsorship

of Canstruction, and Canstruction

incorporates can nutrition information,

recipe cards and sustainability

messaging into its media kit and

competition signage. The organization

has donated over 40 million pounds of

food to local food banks since 1992.

Sustainability

9

STARS CommitteeThe CMI Science, Technology and Regulatory Affairs

committee (STARS) is working to identify and amend

regulatory impacts on the industry, especially on those issues

that cover environmental, health and safety, chemical food

safety and packaging issues. Committee highlights for 2016-

2017 include:

STARS 2.0In an effort to streamline communication and drive

collaboration, the STARS Committee has launched the

STARS committee 2.0 initiative. The purpose is to bring the

Committee into further alignment to respond to regulatory

issues and the latest trends in the can manufacturing industry.

While progress has been made on making meetings efficient,

committee members recognized that the there is a need

to create workgroups under the Chemistry/Food Safety

and Environmental Health and Safety subcommittees. The

subcommittees and workgroups are as follows; Chemical/

Food Safety Subcommittee, Green Chemistry Workgroup,

Emerging Science Workgroup, the Environmental Health &

Safety Subcommittee, Health & Safety Workgroup, and the

Emerging Technology Workgroup.

Chemistry and Food Safety IssuesCalifornia Proposition 65-BPAThe “safe harbor” point-of-sale warnings continue to be

displayed at retail checkout throughout California. The

official” safe harbor” is valid December 20, 2017, although the

signs are expected to provide legal protection from bounty

hunters beyond that date.

California’s Office of Environmental Health Hazard

Assessment (OEHHA) has issued a Question and Answer

on the new reporting requirements for businesses using the

point-of-sale safe harbor warning for potential bisphenol A

(BPA) exposures from canned and bottled foods. According to

OEHHA, companies must report for each canned or bottled

food or beverage product to be covered by the point-of-

sale warning and where BPA was intentionally used in the

manufacture of the container, in a searchable, electronic

format. OEHHA has developed an on-line reporting form for

businesses to use to submit their data.

CMI and NAMPA, along with industry partners, have gone on

the record to request for OEHHA to set reasonable standards

that protects consumers and the industry. CMI has and will

continue to engage the Food and Drug Administration,

Congress and the Trump Administration on the challenges

with Prop. 65.

Other State BPA State ThreatsCMI continues to monitor legislation in states that target

banning BPA in products. CMI has a substantial presence

in nine states and we continue to educate state and local

lawmakers on the benefits of BPA in food safety and

packaging.

Toxic Substances Control ActOn June 22, 2016, President Obama signed into law the

Frank R. Lautenberg Chemical Safety for the 21st Century

Act that makes important changes to the Toxic Substances

Control Act -- the first revision of domestic chemical

management law in 40 years. CMI worked in partnership with

an industry coalition to pass this important legislation.

Environmental Health and Safety IssuesMetal Can CoatingsCMI is working with the Environmental Protection Agency

(EPA) on the next round of national emission standards for

hazardous air pollutants and control rules (NESHAP-MACT)

for the surface coating of metal can operations as required

by the Clean Air Act. The can coatings standard, along with

other industry standards, is listed for attention in a consent

decree between EPA and “Earth Justice.” CMI has met with

EPA officials to discuss the regulatory process, scope and

data collections.

Injury and Illness Annual Survey ResultsCMI collects and publishes an annual injury and illness

industry survey. These statistics allow participating

companies to compare their injury and illness statistics to the

industry and overall injury/illness data collected by the Labor

Department Bureau of Labor Statistics. The current survey

results reflect a continuing injury/illness decline in reported

cases for 2016.

Legislative IssuesNew Administration and 115th CongressOn January 20, 2017, Republican Donald J. Trump was

sworn in as the 45th President of the United States. The

115th Congress began on January 3, 2017. The House of

Representatives is comprised of 241 Republicans and 194

Democrats; Rep. Paul Ryan was elected Speaker. The

Senate is comprised of 52 Republicans, 44 Democrats and

2 Independents; Sen. Mitch McConnell was elected Majority

Leader. CMI looks forward to working with allies on Capitol

Hill and in the Trump Administration to advance the agenda

that best serve the metal and composite can manufacturing

industry and its suppliers.

Soft Drink Taxes CMI continues to engage with beverage industry allies to

oppose burdensome state and municipal measures with

regard to soda taxes. In 2016, Philadelphia, Pennsylvania;

Boulder, Colorado; Cook County, Illinois; and San Francisco,

Albany and Oakland in California have passed taxes on sugar

sweetened beverages. CMI will continue to work with our

partners to prevent these measures from being passed in

other states and cities.

Sci

entifi

c, R

egul

ator

y an

d Le

gisl

ativ

e

10

Farm BillCMI has begun to meet with key Members of Congress

to advocate for all forms of fruits and vegetables to be

included in the 2018 Farm Bill. With a new Administration

and Congress, and working with coalition partners, we are

confident that CMI’s policy goals of inclusion of all forms and

in particular canned food we be included in the new Farm Bill.

Supplemental Nutrition AssistanceProgram (SNAP)During the past year, CMI continued its participation in

the SNAP Choice coalition to ensure canned foods and

beverages remain eligible in the SNAP program. House

Agriculture Committee Chairman Mike Conaway (R-TX)

wrapped up the committee’s in-depth review of SNAP

through a series of 16 hearings. In December of 2016,

Conaway released a report that summarizes the key findings

from the 60 witnesses who testified at the “Past, Present

and Future of SNAP” hearings. The report does not include

specific policy recommendations but is likely the committee’s

first step in identifying priorities as they look ahead to the

2018 Farm Bill.

School Lunch SNACK ProgramCMI continues its involvement in the American Fruit and

Vegetable Process and Growers Coalition (AFVPGC), whose

focus has been to garner support for the all forms message

in any government sponsored feeding programs as well

as making the Fresh Fruit and Vegetable Program (FFVP),

also known as the SNACK program, open to all forms. Both

the House and Senate passed versions of a Child Nutrition

Reauthorizations (CNR) bill out of committee – with the

House version opening up the SNACK programs to all forms,

while the Senate version allowed states that do not already

participate in the SNACK program to apply for a hardship

waiver to include all forms, with the applying state having to

be all fresh within four years. There was hope that the CNR

would get done either as a standalone bill or via an omnibus

package during the lame duck session, with the hopes of

getting the House version of our SNACK provision in the

package. However, this did not happen as the Congress

passed a Continuing Resolution to fund the government. This

now gives CMI and its coalition partners a chance to continue

lobbying both the House and Senate on the CNR in an effort

to open the FFVP to all forms.

WIC Acceptance EffortsCMI continues its efforts to encourage states to allow canned

food in their WIC packages. CMI submitted written as well as

oral arguments to the National Academy of Science as part

of their every 10 year review of the WIC food packages to

ensure that they are meeting the needs of WIC participants.

The Academy released its final report in January 2017, which

included two items of note: 1) states should be required to

offer additional forms of fruits and vegetables (besides fresh)

that includes canned and 2) USDA should fund research

that includes ways to assess how inclusion of the cash value

voucher affects redemption rates and participant choice of

fruit and vegetable varieties. These recommendations are a

boost to CMI’s efforts. In the first quarter of 2017 CMI started

engaging Congress and USDA to secure WIC and other

food policy related research – address food waste and the

economic and nutritional benefits of canned food.

GMO LabelingCMI was involved with Coalition for Safe and Affordable

Food, which was successful in getting Congress to enact

a national uniform GMO labeling rule that preempts any

state laws, which President Obama signed in July. Industry

has now moved into the next phase of the GMO battle,

which is shaping the implementation of the legislation by

USDA. Issues to be debated are how will companies have

to disclose GMO ingredients – possible options are on pack

(which could be text or symbol), smart label, website or 1-800

number (possible option for smaller manufacturers). To

help shape the new rule the USDA will conduct a study to

help devise the mandatory disclosure requirements that is

meant to identify technological challenges that might affect

a consumers’ sense of reliability when it comes to digitally

scanning or otherwise accessing GMO details on food

packages. The results of this study are expected this summer.

The final rule is supposed to be completed by July 2018 – but

it is thought by many that there is not nearly enough time to

finish the mandatory disclosure standard. At the same time

there is an industry effort underway to sync-up the dates

of the implementation of the new National Food Labeling

law with that of the GMO disclosure standards. Having to

basically redesign their labels twice in such short period of

time would have substantial negative economic implications.

Also, it is not known if the timing of the final rule might be

affected by the new environment in DC as a result of the

election of President Trump.

Canned Food AdvocacyCMI continued to increase acceptance and recognition

among policymakers and key influencers that canned foods

are an accessible, affordable, sustainable and nutritionally

smart means to better health. CMI actively engaged

key government and non-government organizations,

including Produce for Better Health Foundation, AARP

Foundation, International Food Information Council,

Grocery Manufacturers of America, and U.S. Department of

Agriculture (USDA) Center for Nutrition Policy and Promotion,

to further promote the importance of using balanced

language when talking about canned foods to help limit

barriers for consumption among Americans.

11

Con

tinue

dS

cien

tific,

Reg

ulat

ory

and

Legi

slat

ive

Some highlights of CMI’s advocacy include: • Produce for Better Health continued to provide credible,

third party support for canned foods throughout their

influencer channels, highlighting limiting language research

in their Fruit & Veggie Connection and posting an article

busting myths about the sodium content in canned foods.

• CMI was instrumental in PBH Foundation conducting a

supermarket tour with key congressional staff to educate

them on the importance of including all forms of fruits and

vegetables in federal policies and programs.

• The International Food Information Council Foundation

promoted the economic and nutritional benefits of canned

foods within their Food Insight blog and continued to

engage CMI when developing their nutrition education

resources.

• USDA’s MyPlate featured content on National Canned Food

Month in a Partner Digest, which reaches large, national

organizations such as healthcare corporations, media

outlets, grocery retailers, health professional associations,

restaurant chains and food manufacturers.

• MyPlate for Older Adults, created by Tufts University and

AARP Foundation, promoted cans as an important nutrient

source for the aging population.

• CMI submitted comments to USDA Food and Nutrition

Service about enhancing retailer standards in the

Supplemental Nutrition Assistance Program (SNAP) and a

statement to the House Committee on Agriculture regarding

food waste, reiterating the important role canned foods play

in nutrition and sustainability.

• CMI sponsored and attended the Food Research

and Action Center’s Annual Benefit Dinner and the

Congressional Hunger Center’s Annual Awards Ceremony.

12

Cans Get You Cooking, the national

consumer campaign designed to

increase canned food purchases and

promote the benefits of canned foods,

continued to drive increased purchase

and consumption. In promoting the

lesser known benefits of canned foods,

CMI partnered with national media

leaders, earned media placements and

curated owned media channels, all in

the pursuit of reversing the category’s

downward sales trend. By inserting

canned foods into the contemporary

culinary conversation, campaign

messaging reached and resonated with

millions of home cooks and influencers.

Paid media partnerships played a key

role in the campaign. By partnering with

Meredith Corporations (which includes

AllRecipes, Better Homes & Gardens

and Parents), 66 million message-

rich impressions were generated.

Additionally, these media properties

directed consumer attention to the

Cans Get You Cooking microsite where

viewers were exposed to eight custom

60-second recipes inspired by canned

foods. During National Canned Food

Month (February) through April of 2016,

the microsite received considerable

traffic driven by references from these

partners. The strategy of inspiring moms

to turn to their “Cantry” drove strong

engagement among cooks, reduced

consumer guilt, and increased positive

sentiment surrounding canned foods.

In terms of earned media results, CMI

distributed a press release, color feature

page and three MAT releases to media

nationwide, highlighting canned food

as the solution to the challenge moms

face in preparing nutritious homemade

meals. This effort generated more

than 67 million branded impressions

and 1,800 placements. Additionally,

proactive media pitching secured more

than 62.8 million impressions across

print, online and broadcast media. In

2016, the campaign aligned with industry

influencers trusted by moms, and through

relationships with registered dietitians

(RDs), the campaign was able to secure

more than a dozen national placements in

highly respected outlets from Huffington

Post to US News & World Report. Lastly,

the campaign enlisted 20 top-tier

“canbassadors” to promote canned foods

on their blogs and social media channels,

reaching nearly 10 million readers.

Another important facet of the campaign

included building a strong social media

presence. The focus in 2016 was to push

richer campaign content to users’ feeds.

Psychographic targeting helped augment

the reach of select types of content to

interested audiences. Average Facebook

post reach increased 236 percent year

over year, “shares” saw an increase of 5

percent, and “likes” increased organically

by 5,000. Twitter was able to grow

followers by 78 percent in 2016 to more

than 31.5 thousand. Additionally, 24.5

million impressions were generated and

Twitter parties bolstered engagement.

The campaigns, website,

CansGetYouCooking.com, is dedicated to

housing campaign materials and recipes

for canned food lovers. Site wide traffic

was up more than 50 percent in 2016.

Traffic from Facebook drove most social

acquisition and constituted roughly one-

third of all website traffic. The recipes

page was the most visited space.

As in previous years, the RD influencer

program served an important function.

Media and retail RDs continued to

serve as strong ambassadors in

traditional and online media. By

securing more than 57 placements,

many from earned opportunities

through education and relationship

building over the past three years, the

campaign exceeded its goal of 15.6

million consumers reached by mid-2016.

Since the campaign’s inception, more

than 35 retailer banners representing

10,000 stores have helped to increase

canned food sales. Three key

merchandising events in 2016 included

National Canned Food Month, Earth

Day and Fall Harvest. Successful

retailers integrated advertising, in-store

displays and social media to maximize

center store sales. During National

Canned Food Month, a combined retail,

digital and blogger social campaign

was implemented with Albertsons/

Safeway corporate leadership resulting

in more than 20.8 million impressions.

In addition, the retail side of the

campaign organized a groundbreaking

Cans Get You Cooking joint webinar

with all 228 Hy-Vee dieticians across

eight states. Spring welcomed Earth

Day 2016, which was championed by

retailers and brand partners with a

campaign toolkit to keep the campaign

message of the endlessly recyclability

of cans top of mind for consumers.

Fall Harvest was implemented across

various platforms including print,

digital, social media, televised cooking

segments, radio, recipe and in-store

canned food display contests.

Since the campaign’s inception,

Cans Get You Cooking retailers saw

significant growth in their canned food

sales compared to the period prior to

the campaign. In fact, retail partners

significantly outperformed the industry.

National Canned Food Month 2017

was again supported by retailers from

coast to coast with fully integrated

umbrella promotions (print, point-of-

sale, in-store displays, recipe links,

digital, social, radio, etc.). More than

3,000 stores representing 15 retail

banners participated in this event.

Overall, the Cans Get You Cooking

campaign demonstrated measurable

success in elevating food can sales

and helping consumers better

understand the value of canned foods.

Cans Get You Cooking Food Can Campaign Successful

13

In 2016, CMI launched a new multi-year initiative designed to

build trust in cans and can linings. It is an issues management

strategy that will establish broad-based engagement with key

stakeholders and consumer influencers to build awareness

about the benefits of cans and allay concern about alternative

can linings based on shared values, science and the process

used to bring them to market.

To accomplish this, a multi-faceted approach was developed

with the goal of promoting the overall benefits that canned

foods and beverages provide to consumers, while also

building support and trust in alternative can linings. The

strategy is built on four strategic pillars.

Pillar OneLeveraging the Collective Strength of the Industry The can manufacturers and can coating companies have

committed their time and resources to building trust in our

industry.

Pillar TwoTargeting High Impact Audiences and Developing a Compelling Values-Based StoryThe initial work, completed in 2016, sets the strong

foundation for building the balance of the campaign. The

first step was commissioning digital ethnography research.

Digital ethnography is a relatively new research method that

leverages the power of big data and the insight of teams of

Ph.D. sociologists. The research examined the motives and

behavior of thousands of consumers online to uncover what

drives their decisions about the purchase of cans and their

opinions about can liners. The research also identified the

consumer segments most likely to influence other consumers’

attitudes. The power of digital ethnography is the insight it

provides not on just who these consumers are, but also what

they believe, where they go for information, and how best to

engage to help build trust in cans and can liners.

The CMI research identified two key segments to engage:

Wellness Mamas and Food Realists.

Wellness MamasWellness Mamas skew strongly female (95%) and are

generally between the ages of 30-40. They are married with

kids, and are highly educated, with more than 85 percent

having a university degree or higher. They mainly work in

education, academia and healthcare, though a quarter are

also stay-at-home mothers. They live in small cities, towns

and suburban areas and are comprised of mainly middle and

upper middle classes.

Food Realists Food Realists are primarily married with children and come

Trust inCANS

Building Trust in Cans and Can Linings

14

mainly from the lower middle and middle class. They range

in age between 30-55, are less educated – 60 percent do

not have a university degree – and tend to work in jobs in the

service industry, as educational assistants, and healthcare

technicians. They live in smaller towns, suburban and rural

areas. They pride themselves on raising a healthy family on a

limited budget.

Based on the results of the digital ethnography research,

a comprehensive message blueprint was developed and

tested to identify messages and message components that

create a more favorable impression of cans, can linings and

sustainability to these two key consumer segments. Of the

more than 50 messages tested, the following were the top

two that consumers responded most favorably to:

• “Canned produce goes from a farm field to the can

within around four hours, while fresh produce can take

three weeks or more to get from the field to the grocery

store. It just makes sense that canned food can help me

put quality meals on the table.”

• “A pantry well-stocked with canned foods helps me save

time and get healthy, home-cooked meals on the

table more affordably and more often.”

Pillar ThreeInitiating and Nurturing Constructive DialogueCMI will proactively engage with both allies and skeptics to

build trust in cans and can linings. With allies, the objective

is to provide them with information about can safety and

benefits, so they can help promote the positive attributes

about cans and can linings and refute negative information

others may spread. With skeptics, the engagement is

designed to invite them to closely examine their claims and

concerns and resist spreading false information.

Pillar FourListening, Engaging and Empowering through Online Channels The program will actively monitor online conversations about

cans and can linings, looking for opportunities to engage

targeted influencers and promote thoughtful analysis about

the benefits of cans and can linings. This pillar will also

include targeted online engagement campaigns designed to

capture real-life examples of how cans positively contribute

to the lives of consumers.

Through the Building Trust in Cans and Can Linings initiative,

CMI will be promoting the overall benefits of cans and

building support for can linings. Effectively managing this

issue protects the can manufacturers and can coating

companies social license and freedom to operate.

CANSBuilding Trust in Cans and Can Linings

15

CMI’s B2B beverage campaign, “Open Up to

Cans,” focuses on building awareness of the

aluminum can attributes by sharing consumer and

industry research and resources on the campaign

microsite, www.smartcansolutions.com. Each

tactic works to successfully spread the word

on the many assets of the aluminum beverage

can through four pillars -- Taste, Innovation,

Sustainability and Performance.

Overall the “Open Up to Cans” media and

marketing outreach led to increased microsite

engagement, which was a direct result of

interactive content.

The campaign microsite, www.smartcansolutions.

com, received more than 12,900 visitors from May

2016 to March 2017. The microsite was promoted

though various platforms from social media and

editorial coverage to industry event participation

and member-focused tools and content, all

leading the beverage industry brand owners to

the microsite. The Case for Cans, A Case Study

in Beverage Packaging Webinar and The Open

Up to Cans Research White Paper generated

the highest microsite traffic. User engagement

increased by 20 percent in the fourth quarter

because of two beverage and packaging trade

publication email marketing efforts.

Online content showcased three engaging video

features, one about the campaign research

and the other two from innovative beverage

companies representing the coffee and wine

industries, respectively. These videos produced

more than 185,000 impressions and 500

engagements.

Ad placements, social media and event

participation all increased beverage brand owner

awareness of the case for cans. Media partners

promoted more than 20 digital content and

banner ads with more than 74,000 impressions.

Facebook and Twitter garnered an additional 1

million impressions. Spikes in engagement were

attributed to the BevNet’s LiveStream Lounge and

promoted posts for the campaign webinar and

videos.

CMI opened up the minds of thousands of wine

brand owners at the U.S. Wine & Beverage Expo

(USBevX) with a successful first engagement

by featuring packaging and tasting of eight

brands of canned wine. The campaign was also

featured in two Wine Industry Network articles:

“Sales of Wine in Cans Jump Over 125% As Wine

Consumers Open Up to Cans” and “What Cans

Can Do For Wine?”

These featured articles were sent to more than

50,000 wine and beverage influencers

Earned placements were received in several

other publications, including an article in

American Brewer-“What’s With All the Craft Beer

in a Can, Man?”

Open Up ToBeverage CanProgram

16

CANSOpen Up To

17

School Challenge

The fifth annual GACR School Challenge resulted in the

collection of nearly 90,000 pounds of aluminum cans by

students in 38 states. CMI awarded $1,000 to the top per

capita recycling school in each state, with an additional

$5,000 to the overall winner. Northern Neck Montessori

School, Kilmarnock, Virginia, took home the grand prize,

recycling 137 pounds of beverage cans per student. The

schools participating range from a five-student elementary

school to high schools with 1,700 students. The challenge

helps teachers raise funds and encourages students to

become environmental stewards.

One of the ways to engage

schools is by attending

Conferences. CMI staff

engaged with hundreds of

teachers at the National

Council for the Social Studies

in Washington, DC.

Commander-in-Chief Recycle Challenge The U.S. Air Force Academy

won the GACR Commander-

in-Chief’s Challenge for

recycling more cans per

cadet than any other

Service Academy. Their 4,117

cadets recycled a total of

3,507 pounds of cans. The

academy received $3,000 that will be used for their Morale,

Welfare and Recreation Programs. The 2016 challenge had

100 percent participation from all four service academies. In

10 weeks, more than 9,400 pounds of aluminum beverage

cans were recycled.

The Great AmericanCANROUNDUP

The Great American Can RoundUp (GACR) program is designed to build enthusiasm about can recycling among schools,

the Service Academies and our Industry.

Industry Challenge The GACR Industry Challenge promotes awareness around the environmental benefits of recycling aluminum cans by

encouraging its members to compete in the challenge. In 2016, more than 5,000 employees from CMI member company

facilities across the country collected over 167,000 pounds of beverage cans, raising more than $80,000 for charity. The

facilities partner with their local schools, charities and other organizations to spread the recycling message and give back

to their community. Since its inception, the GACR Industry Challenge has recycled more than 7 million pounds of aluminum

cans. The Ardagh plant in Elk Grove Village, Illinois recycled 8,732 pounds of aluminum beverage cans in 2016, earning

them top honors in the Industry Challenge. The efforts of the facility’s 67 employees raised more than $3,600 for Ronald

McDonald House. As the winner of the challenge, Ardagh received an additional $2,000 to donate to a charity of their

choice.

201618

to the Ardagh plant inElk Grove Village, Illinois.

Congratulations

FOLLOWUS Please join our efforts by

becoming a Facebook Fan and following us on Twitter:

Cans: Infinitely RecyclableAl the Can

Cans Get You Cooking

Cans: Infinitely RecyclableAl the Can

Cans Get You Cooking

Participants recycled of aluminum beverage cans this year.8,732 pounds

The efforts of the facility’s 67 employees raised more than

for Ronald McDonald House. $3,600

2016 19

About This ReportThe Metal Can Shipments Report is compiled directly from reports received

from can manufacturers unless otherwise noted. This statistical program is

sponsored by the Can Manufacturers Institute and is under the direction of the

CMI Market Data Committee.

AcknowledgmentsThe Can Manufacturers Institute gratefully acknowledges the cooperation of

all industry participants, especially the assistance of the members of the CMI

Market Data Committee for their efforts in the compilation of this Annual Report.

Participants*Ardagh Metal Packaging USA

Ball Corporation

BWAY Corporation

Crown Holdings, Inc.

DS Containers, Inc.

Metal Container Corporation

Silgan Containers Corporation

*Participants in the CMI Metal Can Shipments Report manufacture more than

98 percent of the metal cans in the United States. In order to represent the

entire domestic can industry, CMI estimates can shipments for non-reporters

in its reports.

CanSHIPMENTREPORT

20

General DefinitionsA metal can is a singlewalled container

constructed wholly of tinplate, blackplate

(including tinfree steel), waste plate,

aluminum sheet or impact extrusions,

designed for packaging products.

It excludes steel pails defined as

singlewalled shipping containers having

capacities of one to 12 gallons inclusive,

which are cylindrically constructed

of steel of 29 gauge and heavier.

Shipments for use by the same company,

an affiliate, subsidiary, or parent company

are considered as shipments FOR

OWN USE. All others are considered

shipments INVOICED FOR SALE.

Coverage of this report is confined to

metal cans and ends shipped for use on

metal cans by metal can manufacturers.

Product DefinitionsShipments: The actual number of unfilled

can bodies produced, invoiced for sale

and shipped from a location within the

U.S. or U.S. controlled territory. Starting

in 2012, shipments of beverage cans

includes unfilled can bodies produced,

invoiced for sale and shipped from

a location within the U.S. or U.S.

controlled territory as well as Canada.

Exports: The actual number of unfilled

can bodies produced, invoiced for

sale and shipped from a location

within the U.S. or U.S. controlled

territory to a location outside of the

U.S. or U.S. controlled territory.

Alcoholic Beverages: A two piece

aluminum container containing

beer, non alcoholic beer, wine/

spirits, or wine/spirit coolers.

Non-Alcoholic Beverages: A two piece

aluminum beverage container. Includes

all carbonated and non carbonated

soft drinks, iced tea, tonic, waters,

juice beverages, milk or dairy-based

beverages, and isotonic/energy drinks.

Fruit: Includes all conventional fruit

items: apples, apple sauce, peaches,

pears, pineapple, etc. and all citrus items.

Does not include fruit juices, which are

in the Fruit/Vegetable Juices category.

Pet Food: Includes cat, dog and

fish food.

Vegetables: Includes conventional

vegetable items: peas, green beans,

corn, tomatoes, etc. Also includes dry

line items: baked beans, kidney beans.

Includes mushrooms and pickles. Does

not include soup which is in Soups

& Miscellaneous Foods. Does not

include vegetable juices, which are in

the Fruit/Vegetable Juices category.

Soups & Miscellaneous Foods:

Includes all food items not otherwise

enumerated. Includes soups, edible

oils and solid shortenings, spaghetti,

spices, baking powder, extracts, yeast,

sandwich spreads, jams, mayonnaise,

snacks, cocoa, dough, flour, honey,

nuts, popcorn, popped corn, potato

chips, pretzels, rice, noodles, sauces,

syrups, cake, candies, cereals, loose

tea and canned bags. Also includes

drugs intended for human consumption

except milk based drugs which are in

Other Foods. Does not include iced tea,

which is in Non-Alcoholic Beverages.

Other Foods: Includes Baby Food,

Dairy, Fruit/Vegetable Juices, Seafood,

and Meat & Poultry, including all milk

or soy based baby formula and baby

food products. Also includes dairy

products, such as butter, cheese, eggs,

milk, milk-based products, ice cream,

etc. Also includes non milk-based

puddings. Does not include milk or

dairy-based beverages in two-piece

aluminum beverage containers. Includes

Seafood: fish and shellfish. Includes all

conventional meat and poultry items:

ham, luncheon meat, potted meat,

vienna sausage. Also includes chili and

meat stews. Does not include soup

and spaghetti with meat, which are in

Soups & Miscellaneous Foods. Does not

include fruit and vegetable juices in two

piece aluminum beverage containers.

Aerosol: This is the only category

restricted by can type. Includes

food and nonfoods.

Other Nonfoods: Includes all

other nonfood items not otherwise

enumerated. Includes adhesive strips,

alcohol, tennis balls, cements/dressings,

chemicals, cleaners, cosmetics, dentists’

supplies, disinfectants, dyes, ether,

wood fillers, games/toys, germicides,

gasoline, lubricating grease, grinding

compounds, insecticides, pencils,

photographic supplies, plaster of

paris, floor/shoe/leather/other non

automotive polishes, body/cleanser/

talcum powders, roofing cement, grass

seed, shaving preparations, soaps,

solvents, stamp pads, tobacco and

automotive products such as motor oil,

anti freeze, brake fluid, gasoline, radiator

additives and automotive polish.

Definitions

21

Metal Can Shipments 2014-2016(Millions of Cans)

* To avoid disclosure of individual company data, this category has been omitted.

**Beginning in 2012 beverage can data includes US & Canadian shipments

***Includes Baby Food, Dairy, Fruit/Vegetable Juices, Seafood, and Meat & Poultry cans.

0.7%

-1.4%

1.0%

5.1%

--

1.2%

2.6%

0.2%

-1.0%

-3.3%

-7.9%

-0.4%

-5.6%

3.2%

-2.4%

0.9%

-4.8%

1.2%

2.6%

0.2%

% Change2015 - 2016

2015** 2016**2014**

Total Metal Cans Shipped

BY MARKETFor Sale

Beverage

Food

General Packaging

For Own Use

Beverage

Food

General Packaging

BY PRODUCTBeverage

Alcoholic

Non-Alcoholic

Food

Coffee

Fruit (Excluding Juices)

Vegetables (Excluding Juices)

Soups & Miscellaneous Foods

Pet Food

All Other Foods***

Food By Process

Two-Piece

Three-Piece

General Packaging

Aerosol

Other Nonfoods

125,213

*

25,471

4,736

*

1,711

0

93,295

36,096

57,199

27,182

42

896

9,827

4,612

7,185

4,620

17,496

9,686

4,736

3,839

897

125,095

*

25,372

4,797

*

1,711

0

93,215

36,934

56,281

27,083

43

913

9,513

4,846

7,232

4,536

18,227

8,856

4,797

3,898

899

125,981

*

25,019

4,847

*

1,799

0

94,316

37,898

56,418

26,818

41

841

9,475

4,574

7,462

4,425

18,384

8,434

4,847

3,969

878

22

Food Can Shipments 2011-2016(Millions of Cans)

*Includes Baby Food, Dairy, Fruit/Vegetable Juices, Seafood and Meat & Poultry cans.

PET FOODALL OTHER FOODS*

46

2014

COFFEE

SOUPS & MISCELLANEOUS FOODS

991

FRUIT (EXCLUDING JUICES)

VEGETABLES (EXCLUDING JUICES)

2011

2016

78

2013

2012

76

4,839

2014

2011 5,189

2012 5,078

2013

2014

1,054

1,1012011

2013

2012

2014

9,0522011

2012

2013

9,049

2014 2014

4,879

4,9092011

2012

2013

4,809

6,4852011

2012

2013

6,721

9,903

6,972

42

43

41

2015

896

841

9132015

2016

4,612

4,574

4,8462015

2016

2015

2016

9,827

9,513

9,475

2015

2016

2015

2016

4,602

4,536

4,425

7,185

7,232

7,462

23

Total Aerosol Other

4,657

3,814

843

2011

4,667

3,793

874

2013

4,797

3,898

899

2015

4,847

3,969

878

2016

4,736

3,839

897

2014

General Line Can Shipments: 2011-2016(Millions of Cans)

4,653

3,819

834

2012

* Includes US & Canadian shipments

24

Can Shipments Imports & Exports 2015-2016(Millions of Cans)

ALUMINUM CAN SHIPMENTS, EXPORTS

12 Ounce or Less

Over 12 Ounce & Less Than 1 Gallon

Over 1 Gallon

ALUMINUM CAN SHIPMENTS, IMPORTS

12 Ounce or Less

Over 12 Ounce & Less Than 1 Gallon

Over 1 Gallon

STEEL CAN SHIPMENTS, EXPORTS

13.21 Gallons or Less (closed by crimping or soldering)

STEEL CAN SHIPMENTS, IMPORTS

13.21 Gallons or Less (closed by crimping or soldering)

2016 % Change2015-2016

Source: U.S. International Trade Commission

2015

3,529.1

183.8

285.3

600.6

97.8

40.7

12.2

193.0

2,142.8

190.4

1,557.9

918.0

147.9

57.2

20.0

181.1

-39.3%

3.5%

445.9%

52.8%

51.3%

40.4%

65.3%

-6.3%

25

CMI Executive Committee

AkzoNobel Packaging Coatings

Julian Cass

Alcoa, Inc.

Tony Farraj

Ardagh

David Wall

Oliver Graham

Tim Clarke

Claude Marbach

Jennifer Cumbee

Ball Corporation

John Hayes

Dan Fisher

James Peterson

Kathleen Pitre

Constellium

Don Farrington

CROWN Holdings, Inc.

Tim Donahue

Jerry Gifford

Djalma Novaes

Thomas Fischer

INX

Dave Waller

Metal Container Corporation

Rob Haas

Ray Adams

Novelis, Inc.

David Gill

PPG Industries, Inc.

Shawn Peck

Silgan Containers Corporation

Tom Snyder

David Bevan

Tri-Arrows Aluminum

Henry Gordiner

The Valspar Corporation

Christopher Karalis

U.S. Steel

Mike Purnell

26

Payments can be made through PayPal

via www.cancentral.com or by mail.MAIL SUBSCRIPTIONS TO: Subscriptions

Can Manufacturers Institute

1730 Rhode Island Avenue, NW

Suite 1000

Washington, DC 20036

SUBSCRIPTION INFORMATION:Quarterly reports are available on an email

subscription basis to government, public and private

organizations, and individuals upon request.

SUBSCRIPTION RATES:$600 per year for domestic annual subscriptions. Rate includes

taxes, postage and handling costs. Prepayment is required.

CMI Member Companies

Ardagh Group- Metal Americas

AkzoNobel Packaging Group

Alcoa, Inc.

Ball Corporation

CROWN Holdings, Inc.

Constellium

Domino North America

Eastman Chemical Company

GCP Applied Technologies

Henkel Corporation

INX International Ink Company

Material Sciences Corporation

Metal Container Corporation

Mexichem Specialty Resins

Novelis, Inc.

PallCon Services

PPG Industries, Inc.

Roeslein & Associates

Samuel Strapping Systems

Signode Packaging Systems

Silgan Containers Corporation

Stolle Machinery

Tri-Arrows Aluminum

United States Steel Corporation, Tin Mill Products

The Valspar Corporation

Watson Standard

27

CMI MissionThe Can Manufacturers Institute will serve

as the voice of the metal can making

industry, providing a forum for members

to advocate common industry positions to

legislative and regulatory agencies whose

activities impact the metal can market, to

address issues of common concern, and

to promote cost-effectively the benefits of

the can to protect and grow the market.

Contact1730 Rhode Island Avenue, NW

Suite 1000

Washington, DC 20036

Phone (202) 232-4677

Fax (202) 232-5756

cancentral.com

The yearof the CAN

CAN MANUFACTURERS INSTITUTE 2016/2017 ANNUAL REPORT