How Five Brothers Turned $200 into 108 Billion Cans a Year

Today I'm looking at Ball Corporation - yeah, the aluminum can company. They make 108 billion cans a year, which is roughly 14 cans for every human on Earth.

Here's what caught my attention:

• They just sold their aerospace division for $5.6B to focus entirely on... cans

• They literally fired a lot of small customers because they weren't ordering enough (minimum 5 truckloads). I'm not a fan of this even if it's the "right thing" to do.

• They have a fair amount of customer concentration: 70% of revenue comes from just 10 customers

The business model is simple: make aluminum cans at massive scale, lock in beverage giants with multi-year contracts, and squeeze out every fraction of a cent in efficiency. It's working - they're guiding 11-14% earnings growth.

But here's the thing: what works for a 144-year-old company with $11.8B in revenue might not be the best advice for the rest of us. Firing customers who could become tomorrow's success stories? Building a business that needs $100M+ just to add capacity? Having Coca-Cola control your destiny?

Check out the report below.

Nick

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TL;DR

• What they do: Ball Corporation manufactures 108+ billion aluminum cans annually, commanding 20% global market share after divesting aerospace to focus purely on sustainable packaging

• Key insight: Strategic focus beats diversification—Ball sold a profitable $1.8B aerospace business for $5.6B to double down on aluminum packaging

• The lesson: Build switching costs through operational integration, not relationships. Ball's multi-year contracts and 5-truckload minimums create real customer captivity

• Financial highlight: 20.5% gross margins on $11.8B revenue with 11-14% earnings growth projected

The 30,000-Foot View

Ball Corporation operates a deceptively simple business model: make aluminum cans at massive scale. The company ships 108 billion units annually across three geographic segments:

• North & Central America: 48% of sales (48 billion cans)

• Europe, Middle East & Africa: 25% of sales

• South America: 14% of sales

• Other (aerosol/specialty): 13% of sales

Key stats:

• Market cap: $17.9 billion

• TTM revenue: $11.8 billion

• Gross margin: 20.5%

• Net income: $527 million (TTM)

• Employees: 16,000

• Industry: Containers & Packaging

Company History

• 1880: Five Ball brothers borrow $200 to buy Wooden Jacket Can Company in Buffalo, NY

• 1884: Pivot to glass jars after acid corrodes tin cans; move to Muncie, Indiana

• 1969: Enter aluminum beverage cans via Jeffco Manufacturing acquisition

• 1973: IPO on NYSE

• 1993: Exit glass jar business (spun off as Alltrista, now Newell Brands)

• 1998: Joint venture creates Ball Packaging Europe

• 2016: Acquire Rexam for $6.1B, becoming world's largest beverage can maker

• 2024: Sell aerospace division to BAE Systems for $5.6B; pure-play packaging focus

Show Me the Money

Stand-out features:

• Revenue decline is real, from $13.4B to $11.8B, but intentional after selling aerospace

• Gross margins actually improved from 16.8% to 20.8% despite lower revenue

• Net debt dropped dramatically from $8.5B to ~$5B using aerospace proceeds

• CapEx reduced from $1.7B to under $600M showing capital discipline

Financial Data

The N.O.O.B. Nine — Competitive Powers

The Nerd Out on Business Nine is made up of Hamliton Helmer's famous "7 Powers" of competitive advantage (Scale Economies, Network Economies, Counter-Positioning, Switching Costs, Branding, Cornered Resource, and Process Power) combined with two of my own (Data Flywheel and Distribution Advantage).

Average Score: 3.3/5 - Ball's competitive edge rests on scale and process mastery, not sexy tech moats.

Memorable Marketing

Ball proves B2B companies can build consumer mindshare through strategic sustainability messaging. Their approach combines trade influence with end-consumer awareness:

"Make a Statement" Campaign (2023-2024)

• Core idea: Handwritten sustainability messages on Ball Aluminum Cups

• Channels: Stadium activations, social media, retail partnerships

• Why it worked: Created Instagram moments while eliminating 595,000+ plastic cups

• Result: Cups became Amazon's #3 category bestseller; 25% YoY sales growth

B2B Trade Dominance

• 15+ global trade shows reaching 50,000 professionals

• Co-branded campaigns with Coca-Cola and AB InBev

• $200M invested in sustainability marketing

• 30% increase in digital engagement

Tactical Takeaways:

1. Turn your product into the message (cups with purpose)

2. Partner with customers for co-marketing reach

3. Make B2B products consumer-visible

4. Lead with sustainability metrics, not features

AI Uses & Opportunities

Current Applications:

• Predictive maintenance reducing downtime 20%

• Machine vision quality control catching sub-millimeter defects

• C3 AI partnership for energy management across 195 facilities

• Digital twin simulations for new product development

Future Potential:

• Dynamic pricing algorithms based on aluminum commodity swings

• AI-optimized logistics routing (save 5-7% on transport)

• Generative design for lighter, stronger can geometries

• Automated customer demand forecasting

Bumps in the Road

• Input cost inflation: Aluminum prices up 40% over two years

• Customer concentration: Ball fired 2,000+ small customers in controversial "reduction program"

• Plant closures: 650+ jobs cut across MN, AZ, WA facilities to optimize network

• Regulatory pressure: New recycling mandates add 7% to operational costs

• Energy crisis: European operations face 10% higher energy costs

Your Swipe File

1. Focus beats diversification: Ball sold profitable aerospace for $5.6B to become pure-play packaging.

2. Make switching expensive: Multi-year contracts + custom tooling + minimum orders = captive customers

3. Turn compliance into competitive advantage: First-mover on sustainability certifications creates barriers

4. Fire bad customers (not for me but may be for you): Ball's controversial move to drop small accounts improved margins 200bps

5. Patent everything: 3,429 patents create death by a thousand cuts for competitors