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March 21, 2000
FACT
SHEET
MILLER
BEER BOTTLE
MARKETS FOR AMBER BOTTLES
NOTE: Continental PET stopped offering this premium in mid-2001
This is to provide information to interested parties on where they can market amber plastic beer bottles sold by Miller Brewing. The following information was provided to us by Mr. Warwick Hassan at Continental PET Technologies (CPT) (606-282-6025), the manufacturer of the Miller plastic beer bottle, which has offered a startup premium price for amber plastic beer bottles, and from the two reclaimers which have arranged with CPT to receive, sort, grind and wash amber bottles. The two reclaimers which CPT has made specific arrangements with to accept amber plastic bottles are set forth in the following chart:
|
Reclaimer |
Location(s) |
Bale Specification |
Price |
Contact |
|---|---|---|---|---|
|
Evergreen Plastics |
Clyde, Ohio |
Amber-only bales |
5¢/lb. over mixed clear/green color price, shipping costs to be negotiated directly with buyer |
Byron
Geiger |
|
Mixed color bales with <3% amber |
If <3% amber, mixed clear/green color price, shipping costs to be negotiated directly with buyer |
|||
|
PureTech Plastics |
East Farmingdale, New York Livonia, Michigan |
Amber bales |
5¢/lb. over mixed color price |
|
CPT states that it will purchase clean amber flake from these reclaimers at their Florence Kentucky and Rockwell, Texas facilities, not being equipped itself to grind and wash bales. It will pay them the going market price for green flake at the shipper’s door plus 5¢/lb. to be applied to offset the cost to separate the amber from the clear and green PET. The intention is that, when the MRF sells amber only bales to these reclaimers, the reclaimer will pass on the 5¢ premium to the MRF, and, when the reclaimer makes the separation, it will retain the premium.
The existence of the PureTech market for amber-only bales is entirely dependent upon CPT both agreeing to buy the amber flake for green flake prices to provide them with a market and to cover the additional sorting costs. The Evergreen market is not entirely dependent upon CPT to provide them with a market because they presently make black strapping, and, if CPT stops buying back amber flake for the price of green flake, it can use amber internally to make black strapping for which they have a market. As to the sorting cost, if amber subsequently reaches a critical mass somewhere above 3%, Mr. Geiger indicated that they would be dependent upon CPT to continue paying a premium to cover the additional sort costs, otherwise they would consider passing that cost through to MRFs in lower bale prices.