Glass packaging demand slows in Oceania

EADING glass packaging supplier, Owens-Illinois, said shipments of wine and beer bottles within Australia and New Zealand has slumped, providing further evidence of the marked slowdown in beverage consumption as drinkers stay away from pubs, clubs and liquor shops.

Albert Stroucken, Owens-Illinois executive chairman, chief executive and president, told analysts that challenging market conditions had resulted in sharply lower demand for his company's beer and wine bottles. "Our shipments of wine and beer bottles in Australia and New Zealand were down nearly 20% from the prior year," Mr Stroucken said during a second quarter earnings briefing.

Perryburg, Ohio-based Owens-Illinois, which is also the Asia-Pacific's leading glass packaging supplier, also warned the poor outlook for the beer and wine sector will force it to restructure its local operations with $50 million set aside for capital expenditure and redundancies.