Grupo Modelo Partners With WestRock and Grupo Gondi in Transition to CanCollar® Eco Packaging, Eliminating Over 100 Tons¹ of Plastic Waste

Rhea-AI Summary

Grupo Modelo has partnered with WestRock and Grupo Gondi to invest $4 million in sustainable CanCollar® Eco packaging, making it the first company in the Americas to adopt this technology. This initiative aims to eliminate plastic rings from beer cans sold in Quintana Roo, preventing the disposal of approximately 100 tons of plastic waste and 335 tons of packaging waste annually. The transition to eco-friendly packaging is expected to significantly contribute to Grupo Modelo’s sustainability goals and will be implemented in two phases, starting with selected beer brands in early 2022.

Positive

• Grupo Modelo is leading the way in sustainable packaging by adopting CanCollar® Eco technology.
• The investment of $4 million in this eco-friendly solution demonstrates commitment to environmental sustainability.
• Elimination of plastic rings will reduce plastic waste by 100 tons and packaging waste by 335 tons annually.
• The transition includes a significant number of popular beer brands, enhancing brand image and consumer appeal.

Negative

• None.

• The beer brewing company is the first in the Americas to adopt the WestRock CanCollar® Eco technology, investing roughly 4 million USD in sustainable packaging
• The innovative packaging will make it possible to eliminate plastic rings on cans sold in Quintana Roo, eliminating 100 tons¹ of plastic waste and avoiding 335 tons² of packaging waste annually

ATLANTA--(BUSINESS WIRE)-- In a partnership with WestRock and Grupo Gondi, Grupo Modelo is investing roughly 4 million dollars in the sustainable, fiber-based CanCollar® Eco solution in Quintana Roo, a Mexican state on the Yucatan Peninsula. The partnership aims to help advance the beer company’s sustainability goals by eliminating its use of plastic rings in Mexico.

Grupo Modelo partners with WestRock and Grupo Gondi in transition to CanCollar® Eco Packaging, eliminating over 100 tons of plastic waste annually. (Photo: Business Wire)

Grupo Modelo is the first company in the Americas to adopt the recyclable CanCollar® Eco technology, which will replace hard-to-recycle plastic packaging and is expected to result in over 100 fewer tons¹ of plastic waste each year.

“At Grupo Modelo, we are continuing to evaluate various alternatives for plastic rings in the packaging of beer cans,” says Soqui Calderon, regional director of Sustainability for Grupo Modelo. “This is how we discovered CanCollar Eco, a new solution developed by WestRock and produced in Mexico by Grupo Gondi. Made from recyclable paperboard, this innovative packaging uses the least amount of material required to hold and to keep our beer cans secure through the supply chain.”

This solution will result in sustainability gains; specifically, it will enable the elimination of plastic rings on all cans sold in Quintana Roo in two phases. First, the 6-pack 355ml Corona Extra, Montejo and Modelo Especial can rings are being replaced. Then, in early 2022, the first high speed CanCollar Fortuna® machine for the application of this packaging will be installed to eliminate the use of plastic rings across Mexico on 6-packs including 355 million cans of Corona Extra, Montejo, Modelo Especial, Barrilito, Negra Modelo and Victoria, as well as the 4-pack 473 ml cans of Victoria, Modelo Especial and Corona.

“At WestRock, we are driving greater sustainability by working with our customers to develop and implement new, eco-friendly packaging solutions,” said Patrick Kivits, president of Consumer Packaging at WestRock. “The introduction of CanCollar Eco to the Mexican market, in partnership with Grupo Gondi, is an exciting example of this work. We look forward to helping Grupo Modelo meet its sustainability goals through the implementation of this innovative, fiber-based packaging.”

Unlike a cardboard box that completely covers the product, CanCollar® Eco uses only a paperboard clip to hold the upper part of the cans, making possible the goal of removing approximately 12 million plastic rings per year from the market.

WestRock and Grupo Gondi support Grupo Modelo’s industry leadership to reduce environmental impact in every community in which they operate by innovating, conserving natural resources and taking care of the environment.

1.	Based on 2x3 standard can pack format, and plastic ring finished package weight of 8 grams/pack across 12 million packs
2.	Based on 2x3 standard can pack format, comparing Cluster-Pak (paperboard wrap alternative) at a weight of 32.99 grams/pack to CanCollar Eco at 7.7grams/pack across 12 million packs

About WestRock

WestRock (NYSE: WRK) partners with our customers to provide differentiated, sustainable paper and packaging solutions that help them win in the marketplace. WestRock’s team members support customers around the world from locations spanning North America, South America, Europe, Asia and Australia. Learn more at westrock.com/sustainability.

About Grupo Modelo:

Grupo Modelo, established in 1925, is a leader in the brewing, distribution and sale of beer in Mexico and is a part of Anheuser-Busch InBev, a leading global beer company. It currently has 46 domestic brands, including Corona Extra, Corona Cero, Negra Modelo, Modelo Especial, Pacífico and Victoria. It exports seven Mexican brands to a large part of the world. It is an importer into Mexico of the Budweiser, Bud Light, Goose Island and Stella Artois brands. Through a strategic alliance with Nestlé Waters, it produces and distributes in Mexico the bottled water brands Sta. María, Nestlé Pureza Vital, Perrier and S.Pellegrino, among others.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220110005270/en/

WestRock

Investors:

James Armstrong, 470-328-6327

Vice President, Investor Relations

james.armstrong@westrock.com

Media:

Courtney James, 470-328-6397

Director, Corporate Communications

courtney.james@westrock.com

Grupo Modelo

Media:

Fernando Morales

Reputation & Comms Director

Fernando.moralesa@gmodelo.com.mx

Source: WestRock Company

FAQ

What is Grupo Modelo's new sustainability initiative involving WestRock?

Grupo Modelo is investing $4 million in CanCollar® Eco packaging to eliminate plastic rings from beer cans.

How much plastic waste will be eliminated by Grupo Modelo's new initiative?

The initiative aims to prevent the disposal of approximately 100 tons of plastic waste annually.

What is the expected impact of CanCollar® Eco technology on Grupo Modelo's operations?

It will reduce packaging waste by about 335 tons each year and enhance sustainability efforts.

When will Grupo Modelo implement the new CanCollar® Eco packaging?

The implementation will occur in two phases, starting with the first phase in early 2022.

Which beer brands will be affected by the transition to CanCollar® Eco packaging?

Popular brands including Corona Extra, Modelo Especial, and Montejo will initially transition to this eco-friendly packaging.