Kaniel, the Kfar Sava-based company which for years manufactured the aluminum cans from which Israelis drank Coke, Pepsi, and other soft drinks, as well as beer, juice, and other beverages, is getting out of the aluminum can business, and shutting down production of beverage cans. As a result, 80 of the company's 370 workers will be let go – and the 240 million cans they produced annually in recent years will instead be imported.
The company said that it would concentrate on production of cans for pickles, olives, tomato sauce, and industrial products. In a statement Monday, Kaniel said that it would continue to invest in research and development, and produce industrial-sized.
Industry analysts said that Kaniel had been reliant on three customers in the drink can business, and feared that it would be unable to keep up with the competition, which had begun producing good quality products for less money. In its other lines, Kaniel has dozens of customers, so the company believes it has a better chance of maintaining its success in those areas.
As a result of the increased competition, Kaniel has faced steep losses in its drink can business in the past few years. Upgrading the current plant to produce the quality of cans that mega-factories in China and India are producing would cost tens of millions of shekels, and would require moving the factory to a new location altogether. Instead of taking a chance on an investment that it could not guarantee would pay off, the analysts said, Kaniel has decided to give up on drink cans altogether.