Wednesday, April 29, 2009

Is Bigger Better Bottle really Better?

Recently the New York State Legislature voted on a bill called the "Bigger Better Bottle" bill. Signed into law during the first week of April by Governor Paterson, provisions mandate that "unique electronic scanner bar codes for containers sold and returned in New York". This provision caught the entire business community off guard and has created a real mess in the bottling industry.

In Saratoga Springs, the Ball Metal Container Corporation manufactures approximately three billion 12 once aluminum beer and soft drink cans each year for approximately 400 different brands of beer, soda and juices. In fact, well over 300 million cans have been made this year already. Steve DiLoreto, Plant Manager at Ball states, "We build inventory all year to supply our customers through the summer". Further he states, "obviously we can't scrap all those good cans." Seventy five percent of all inventory is used in New York State alone.

Not only does Ball have to create new labeling for the 400 brands but has to get corporate approval from clients who are not even in the United States all of which takes time, energy and money. Some estimates internally state that the retooling alone will cost over $500,000. Small bottlers in New York also are affected by this as well.

"The New York bar code was added to prevent out-of-state containers from being brought into New York to claim the deposit.", said Erin Duggan a spokewoman for Governor Paterson. She added, "The Governors Staff has been meeting with distributors and the industry once they realized the magnitude of the provision and closely examining the implications of this new law."

The new law goes into effect June 1st. Clearly cans and bottles will not be ready for the fast paced summer season.




1 comment:

Anonymous said...

How is it that it caught the industry off guard? The only impediment to this bill, which had been introduced in the legislature year after year for more than a decade, was Joe Bruno and the bottle industry. And Paterson had indicated more than a year ago that he was in favor of it.