A new aseptic carton (STKL)
Tetra Pak is developing a fiber-based liner to replace the aluminum layer currently used in its food and beverage packaging. Tetra Pak cartons are typically 70% paperboard, 25% plastic, and 5% aluminum. The layer of aluminum prevents spoilage as an impermeable metal barrier to light, UV rays, micro-organisms, and other contaminants. Aluminum is also the lightest complete barrier in common use and can be recycled continuously. Tetra Pak has been testing the new carton in pilot tests.
One of biggest challenges in recycling Tetra Pak cartons is the layer of aluminum and plastic. Many brands would like to be seen as more recyclable and environmentally friendly, but the alternatives have significant downsides. Tetra Pak is investing €100M over the next 5-10 years to further enhance the environmental profile of food cartons. SunOpta uses Tetra Pak aseptic packaging for its plant-based milks. The increased recyclability would be a selling point for everyone in the supply chain.
Alcohol imports accelerate (STZ)
Total beverage alcohol imports grew 30% over the 12 months ended April. Over the last three months imports grew 21%, accelerating from the 18% growth in the three months ended March.
- Imported beer grew 18% by volume and 20% by value over the last 12 months. Over the last three months beer imports grew 12% by volume and 16% by value, accelerating from 10% growth by volume and 12% by value in the three months ended March. 79% of imported beer comes from Mexico. Constellation Brands represents a majority of Mexican beer imports and 60% of imported beer.
- Imported packaged wine for the last 12 months grew 36% by value. Over the last three months volumes decreased 12% and by value grew 6%. That represents an acceleration from a 10% decline by volume and 8% growth by value in the three months ended March.
- Imported packaged spirits grew 39% by value over the last 12 months. Over the last three months volumes grew 21% and by value grew 37%. That compares to 16% volume growth and 33% value growth over the three months ended March.
Exported beer grew 29% by value over the last 12 months. Over the last three months exported beer grew 8% by volume and 59% by value. Exported packaged wine grew 12% by volume and 17% by value over the last three months. Constellation Brands has been the principal share gainer in beer this year.
Tomato imports fall 2% (APPH)
U.S. imports of fresh vegetables grew 4.9% to $10.8B in the 12 month period ended April. Tomatoes are the largest vegetable import at $2.7B, which represents a 2% decrease YOY. The value of fruit imports increased 17% to $18.7B in the same time period. The largest fruit category is berries (excluding strawberries) which grew 19% to $4.1B. Avocados are the next largest at $3.3B, representing 35% growth. Strawberry imports increased 8% to $1.4B. Despite the growth in controlled agriculture tomato cultivation, imports only had a modest decrease, suggesting if there was any share loss it was likely in other domestic production. SunOpta has shifted much of its strawberry sourcing to Mexico to lower costs and increase supply consistency.
