Latin American market boosts O-I sales

Higher spirits and beer shipments in Latin America boosted O-I sales volumes.

In its second quarter financial report the global container glassmaking group stated that sales volumes had increased in the single digits in the region.

Growth was concentrated in Mexico, which reported record sales.

Another positive sign was reported in Brazil where low single-digit growth in shipments in the quarter was driven by gains in June.

European shipments were nearly on par with the prior year, as expected while sales volume in Asia Pacific declined primarily due to lower domestic sales in China, as production was exported to support sales to mature markets. 

North America sales volume declined due to lower shipments and the ongoing unfavorable mix seen in prior quarters. Shipments declined primarily due to a fewer number of shipping days in the quarter and lower sales of returnable bottles in Canada.

O-I said it was mitigating itself from the impact of the ongoing decline in megabeer in the USA by positioning itself to benefit from the growing market of US beer imports through its joint venture with Constellation Brands (CBI) and long-term sales contracts in Mexico.

In the first half of 2017, shipments in beer for North America, plus Mexico and the joint venture with CBI were up mid-single digits.

Total net sales in the second quarter of 2017 were $1.8 billion, similar to the prior year second quarter.