Guala Closures targets Coleus Packaging to strengthen market position

SOUTH AFRICA – The Competition Commission has approved Guala Closures’ acquisition of Astir Vitogiannis, a Greek company owned by Special Packaging Solutions Investments (SPSI), with conditions to preserve fair market practices and public interest.

Guala Closures, an Italian-based company, specializes in manufacturing and supplying aluminium bottle closures in South Africa.

Astir operates locally through its subsidiary, Coleus Packaging, a major player in producing and distributing crown corks for the brewing and bottling industries across Southern Africa.

This acquisition merges complementary product lines: Guala’s expertise in aluminium closures with Astir’s focus on crown corks.

The acquisition comes at a crucial time, with increasing demand for sustainable packaging materials in the food and beverage sectors.

Global trends like strict anti-plastic regulations drive demand for metal packaging solutions like aluminium closures and crown caps.

A 2023 United Nations Environment Programme (UNEP) report highlighted that 80% of plastic pollution could be eliminated through systematic guidelines, further propelling the growth of metal closures.

The global market for metal crown caps, valued at US$1.71 billion, is expected to grow to US$2.14 billion by 2029, largely due to the shift towards environmentally friendly packaging.

Investments and competitive edge

In response to this demand, Coleus Packaging has invested R40 million in a new PMC500 machine at its Alberton factory, increasing production capacity by 20%.

This investment positions the company to better compete with international rivals. Coleus already plays a key role in supplying metal caps to major brewers and beverage companies across South Africa and neighbouring countries, including clients like AB InBev, Heineken, Diageo, and Coca-Cola.

In 2021, Coleus produced over 6.2 billion caps, with these brands accounting for 98% of its sales.

The Commission imposed conditions prohibiting Guala from forcing customers to purchase bundled products to prevent anti-competitive practices. This ensures continued competition in the market.

Additionally, a key condition of the acquisition is the continued operation of the Coleus manufacturing plant in South Africa, safeguarding local production and jobs.

Guala has also committed to maintaining HDP (Historically Disadvantaged Persons) ownership for at least two years following the merger, reinforcing its dedication to equitable ownership and public interest.

With these conditions, Guala Closures is poised to enhance its market leadership in packaging while supporting sustainable, local production.

Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE