Moody'S Reports On Glass Packaging - Ardagh Should "Fare Better" Than Smaller Rivals

According to ratings agency Moody's, Ardagh Glass should "fare better" in the current challenging economic environment than smaller rivals. The agency said that Ardagh's large production footprint and strong pricing power should help it to maintain "solid profitability levels." Ardagh Glass is controlled by Dublin financier Paul Coulson and is one of Europe's biggest packaging firms, with more than a 30% share of markets in the UK, Germany and Scandinavia. Moody's said that about 90% of glass-packaging products were used in food and beverage items, which were largely non-discretionary items. It added that while demand, therefore, was likely to remain relatively steady, industry players wouldn't be "completely immune" to volume losses. Moody's said the chief risks to demand included destocking, weakening demand for certain consumer products as a result of consumers' diminished disposable income, and the substitution of glass with plastic or metal packaging.