Arnest Packaging Solutions plans to increase prices for aluminum cans by 2.9%

Manufacturer of aluminum cans for beer and soft drinks, Arnest Packaging Solutions, plans to increase product prices by no more than 2.9%, the company announced today, September 11. “The maximum price increase will be 2.9% per package, the markup per can is 26 kopecks,” the statement says. The company added that the price increase is temporary and will be valid for 15 months, until December 31, 2024.

Arnest Group of Companies bought three can production factories in the Moscow, Leningrad and Chelyabinsk regions from the American Ball Corporation in September 2022. In 2021, these enterprises occupied about 70% of the aluminum can market in the Russian Federation, the group reported.

About Arnest Packaging Solutions’ plans to increase prices for aluminum cans became known from the company’s letter to clients dated September 5. As stated in the appeal, the transition of factories to autonomous operation required the localization of IT infrastructure, which turned out to be a complex and expensive process. In addition, the increase in the key rate by the Central Bank led to an increase in the cost of borrowed funds used to build a plant in Ulyanovsk.

Arnest Packaging Solutions explained to Kommersant that the price increase is a forced measure related to external factors, and the company is making every effort to make packaging affordable and meet market needs, continuing the construction of a plant in Ulyanovsk with a capacity of more than 1.5 billion cans per year. On Monday, the company added that the launch of the enterprise will be a reason to stabilize prices. It is planned that the plant will be launched at full capacity in 2024.

Anatoly Kostyrev