Rexam, the world's largest producer of drinks cans, said recently that it had shrugged off higher raw material prices in the first half of the year by a combination of hedging, pushing through price increases & using the buying power of its largest customers. S. Angwald, CE of the UK-based consumer packaging group, unveiled a 14% rise in the first half pre-tax profits from £70m to £80m. Rexam spends around £900m/year on aluminium, used in the manufacture of beverage cans, but Mr Angwald said it had been protected in the US from rising prices by customers such as Coca-Cola buying the metal. "They are purchasing aluminium from big suppliers. We are just passing it through and converting cans for them." In Europe, Rexam had safeguarded its aluminium supply for 3 years, meaning it was hedged for this year, next year and to part of 2006.
