Sustainable aluminium provider Novelis has entered into a long-term contract with Coca-Cola Bottlers’ Sales & Services Company (CCBSS).
CCBSS has signed this agreement as the contracting agent for Coca-Cola's authorised North American bottlers.
As part of this agreement, Novelis will be responsible for supplying aluminium can sheets to Coca-Cola North American bottlers for the entire brand family under Coca-Cola.
The beverage can sheets will be provided from Novelis’ facility in Bay Minette, Alabama, US, which is currently being constructed.
This plant is scheduled to start operations in 2025.
Once open, the low-carbon facility is expected to be the first fully integrated aluminium manufacturing and recycling unit to be constructed in the US in the past four decades.
It is projected to create and support approximately 1,000 new jobs.
In addition, Coca-Cola's North American bottlers, under the CCBSS and Novelis agreement, have confirmed the purchase of aluminium can sheets in ‘confidential volume’ over the period of several years.
Novelis president and CEO Steve Fisher said: “This contract validates our investment in expanding rolling and recycling capacity in North America and solidifies a strong future for sustainable aluminium as the beverage packaging material of choice.”
Furthermore, the latest contract includes a provision for closed-loop recycling, which ensures that both companies can reinforce their commitment towards sustainability initiatives.
Under this closed-loop recycling programme, Novelis directly obtains the manufacturing scrap created at the time of the manufacturing process and recycles this scrap into new can sheets.
The company said it recycles more than 80 billion used beverage cans annually and transforms them into new aluminium sheets for use in beverage packaging.
Coca-Cola's chief procurement officer Dan Coe said: “The evolving role on behalf of the Coca-Cola Company and our bottlers is to build a resilient domestic supply chain, thus enabling sustainable long-term growth. We recognise Novelis as a leader in sustainability, committed to supporting our 2030 World Without Waste Targets.”
