Ball Corp to Launch Aluminum Cups in Retail & On-Premise Stores

Ball Corporation BLL has entered into a partnership with Acosta to unveil its exclusive aluminum cups in retail and on-premise outlets that include grocery, drug and C-stores, food service, specialty channels and mass channel retailers across the United States.

Acosta is a leading sales and marketing agency in the consumer packaged goods industry. The company’s deep industry knowledge and innovative technology will enable Ball Corporation to launch its aluminum cup into retail and on-premise outlets in 2021 while ensuring to provide more sustainable cup options to customers.

In September 2019, Ball Corporation launched its first infinitely-recyclable Ball Aluminum Cups in the United States in response to the increasing consumer preference for sustainable products over plastic cups. These aluminum cups can be recycled an infinite number of times without losing quality. The cups’ lightweight, sturdy and cool-to-touch nature offers consumers a better beverage drinking experience. In fact, these cups offer more sustainable packaging options for retailers, entertainment venues and concessionaires.

Ball Corporation provides key aluminum packaging products and services to stable consumer-oriented end-markets, such as food and beverages, household and healthcare. The company witnessed significant demand for beverage-can demand as the coronavirus pandemic spread in North America. Higher demand for at-home consumption is anticipated to continue in the foreseeable future.

Throughout 2020, the Beverage packaging, North and Central America  segment is expected to gain on continued benefits from new customer contracts, operational efficiency, strong demand for aluminum beverage packaging, while the Beverage Packaging, EMEA segment will gain on customers’ growing preference for cans for traditional and non-traditional beverages, strong growth for energy drinks and higher at-home consumption.

The company is largely investing in aluminum packaging production to capitalize on the rising demand for aluminum cans, bottles and cups. Ball Corporation is also focused on improving operational efficiencies, sustainability benefits and ramping-up the previously-announced line additions, speed-ups and greenfield-plant expansions. Ball Corporation’s recently-launched infinity bottle will provide sustainable solution for personal care products, as customers are shifting from small- to mid-sized plastic containers at hotels and stores. The company expects its previously-announced aluminum beverage can and cup projects to add at least 8 billion units of capacity by the end of 2021.

The company maintains its expectation to deliver long-term diluted earnings per share growth of at least 10-15% beyond 2020 and achieve EVA (economic value added) dollars growth of 4-8% per year.

Price Performance    

Ball Corporation’s shares have gained 4.9% over the past year, outperforming the industry’s growth of 4.3%.

Zacks Rank & Stocks to Consider

Ball Corporation currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Industrial Products sector are Silgan Holdings Inc. SLGN, Ampco-Pittsburgh Corporation AP and Energous Corporation WATT. While Silgan sports a Zacks Rank #1 (Strong Buy), Ampco-Pittsburgh and Energous carry a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Silgan has a projected earnings growth rate of 11.3% for 2020. The company’s shares have gained 6% in the past three months.

Ampco-Pittsburgh has an expected earnings growth rate of 2.70% for the current year. The stock has appreciated 4% in the past three months.

Energous has an estimated earnings growth rate of 17.3% for the ongoing year. The company’s shares have rallied 17% in the past three months.

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