Crown Holdings (CCK) Expands Its Partnership With Socorro
Crown Holdings, Inc. CCK announced that its subsidiary, Crown Embalagens Metálicas da Amazônia S.A., expanded its partnership with Brazil-based beverage producer Socorro Bebidas. The collaboration was expanded to launch Acquíssima Sabor flavored mineral water in 350 ml CrownSleek cans.
Socorro’s foray into the water business involved the company using CrownSleek cans to package its Acqussima mineral water brand. Socorro needed to portray the beverage's refreshing and health-conscious nature, while maintaining its focus on sustainability.
CrownSleek cans feature metal packaging, which has the inherent advantages of providing a strong barrier against light and oxygen, while preserving the freshness of the product. Moreover, aluminum beverage cans are infinitely recyclable.
Metal packaging is lightweight, and easy to transport, serve from and enjoy, making it convenient for customers.
These features attract Brazil-based consumers, who have recently helped take the country's recycling rate for aluminum beverage cans to 100%. Total canned water volume in Brazil has increased about sevenfold from 2021 to 2022. This indicates a regional trend toward aluminum-packaged water, and a sustained shift away from tap and bulk water.
For several years, global industry demand for beverage cans has been growing as it is the world’s most sustainable and recycled beverage packaging. An estimated 75% of beverage product launches are now in cans. Crown Holdings has, thus, been focusing on growing its global beverage can business in order to tap strong demand growth.
CCK is set to implement several beverage can capacity expansion projects through the end of 2023 in order to meet the surging demand for beverage cans. These projects include the construction of plants and the addition of production lines to existing facilities.
Approximately 25 billion units of beverage can capacity are planned to be added through the end of 2023 (from the 2019 levels). The company expects a free cash flow of $500 million and a capital expenditure of $900 million.
Price Performance
Crown Holdings’ shares have lost 7.8% in the past year compared with the industry’s fall of 12.3%.
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Zacks Rank and Other Stocks to Consider
The company currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the Industrial Products sector are Worthington Industries, Inc. WOR, The Manitowoc Company, Inc. MTW and W.W. Grainger, Inc. GWW. WOR and MTW flaunt a Zacks Rank #1 (Strong Buy) at present, and GWW has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Worthington Industries has an average trailing four-quarter earnings surprise of 14.9%. The Zacks Consensus Estimate for WOR’s fiscal 2023 earnings is pegged at $4.94 per share. The consensus estimate for 2023 earnings has moved north by 10.5% in the past 60 days. Its shares gained 54.3% in the last year.
Manitowoc has an average trailing four-quarter earnings surprise of 38.8%. The Zacks Consensus Estimate for MTW’s 2023 earnings is pegged at 85 cents per share. The consensus estimate for 2023 earnings has moved 63.5% north in the past 60 days. MTW’s shares gained 77.7% in the last year.
The Zacks Consensus Estimate for Grainger’s 2023 earnings per share is pegged at $35.83, up 7.6% in the past 60 days. It has a trailing four-quarter average earnings surprise of 9.1%. GWW gained 71.2% in the last year.
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