Crown Cork & Seal
By: Nadia Rami
The metal container industry has been around for several years. There are several
different companies who contribute to this large industry. One of the leading companies is called
Crown Cork & Seal. This company among others have dedicated their time to the manufacturing
and distribution of things like metal containers and caps. Just like every industry, there are some
issues that companies must face. First, let us take a deeper look into Crown Cork & Seal and
what this company truly stands for.
Crown Cork & Seal was founded on August 1891 by a foreman in a Baltimore machine
shop. The idea of this company came about when this foreman had an idea of a better bottle cap;
a piece of tin-coated steel with a flanged edge and an insert of a natural cork. By the 1930s, this
company was extremely successful in the United States of America; selling more than half the
U.S. and world supply of bottle caps. Although there have been some rough patches in the
company history, all around Crown Cork & Seal is a fairly successful corporation. Between 1956
and 1961, sales increased from $115 million to $176 million and profits were rising. The
company’s longtime chairman, John F. Connelly, stepped down in May 1989 and appointed
William J. Avery chief officer of the Philadelphia can manufacturer. Although the company was
successful as it is, as a leader Avery was debating on what kind of change he would like to see in
the company. Avery wondered whether or not he should expand the company’s horizons, and
explore the idea of manufacturing plastics. For years, CC&S stuck to its primary business; metal
making. However, analysts saw little growth for metal can making in the 1990s and predicted
that plastic manufacturing may be a benefit to the company in the future.
Although for decades, CC&S has been focused on the manufacturing of metal products,
newly appointed chief officer William J. Avery felt like it was time for a change. Since the
1990s, the idea of plastic manufacturing was a concept of concern. Throughout the 1980s,
plastics was the growth leader growing from 9% in 1980 to 18% in 1989. Plastic bottles
accounted for a good percentage of domestic soft drink sales. Like any other product, plastics
had its pros and cons. The good thing about using plastic is the fact that it is light weight and
more convenient to handle. However, on the other hand, the plastic bottle often times allowed
carb to escape in about 4 months whereas aluminum cans held carbonation for longer than 16
months. Although there was a large increase of plastic sales, the idea of manufacturing plastic
products were still iffy due to the simple fact of shelf life. In addition to plastic bottles, the
company was also looking into manufacturing glass products. However, metal sales seemed to
