The local operations of Astir, a Greek company under the ownership of SICC, is through its subsidiary Coleus Packaging and is a key player in the manufacturing and distribution of crown corks for the brewing and bottling industries in Southern Africa.
The acquisition will bring together complementary product lines, with Guala Closures focusing on aluminium bottle closures and Astir specialising in crown corks.
This is a major opportunity for Guala with rising demand for sustainable packaging material for food and beverages and the strict anti-plastic guidelines by international governments contributing to the demand for metal crown caps.
According to United Nations Environment Programme (UNEP), held in May 2023, 80% of plastic pollution can be eliminated by following systematic guidelines.
The local operations of Astir, a Greek company under the ownership of SICC, is through its subsidiary Coleus Packaging and is a key player in the manufacturing and distribution of crown corks for the brewing and bottling industries in Southern Africa.
The acquisition will bring together complementary product lines, with Guala Closures focusing on aluminium bottle closures and Astir specialising in crown corks.
This is a major opportunity for Guala with rising demand for sustainable packaging material for food and beverages and the strict anti-plastic guidelines by international governments contributing to the demand for metal crown caps.
According to United Nations Environment Programme (UNEP), held in May 2023, 80% of plastic pollution can be eliminated by following systematic guidelines.
These recent changes are expected to catalyse the growth of the metal crown caps market to almost double from the current estimated size of $1.71bn to $2.14bn by 2029.
Coleus invested R40m in a new PMC500 machine for its factory in Alberton in February to increase production capacity by 20% to better compete with international competitors.
According to the Aluminium Closures Group, aluminium closures in the wine industry show an upward trend because of recycling advantages and increased shelf life, with more than 30% of the global bottled still wine now expected to be sealed using aluminium.
To prevent anti-competitive practices, the Commission has imposed an anti-tying and bundling condition.
This ensures that the merged entity does not force customers to purchase bundled products, thereby maintaining fair market competition.
In July of 2022, Astir purchased a 74.99% stake in Coleus from AB Inbev
Coleus operates manufacturing sites within South Africa and provides metal caps to a variety of breweries as well as companies producing beverages and soft drinks in South Africa and its neighbouring nations.
In 2021, the company manufactured over 6.2 billion caps for its clients, including major names such as AB InBev, Heineken, Diageo, and Coca Cola, which collectively accounted for 98% of its sales.
A notable condition of the approval is the retention of the Coleus manufacturing plant in South Africa, ensuring continued local production and employment.
Additionally, Guala has committed to maintaining HDP (Historically Disadvantaged Persons) ownership for at least two years post-merger, reinforcing its commitment to public interest and equitable ownership structures.
