OI · CIK 812074
What O-I Glass, Inc. told the SEC could break it.
O-I Glass's risks reflect the economics of energy-intensive glass-container making sold to a handful of beverage giants. Energy — natural gas, fuel oil and electricity for its furnaces — is 10-20% of its manufacturing costs and swings with volatile fuel prices, only partly insulated by pass-through contracts (over 89% of U.S./Canada volume) and hedging, with its European and Latin American operations more exposed. Its revenue is concentrated in global food-and-beverage majors like AB InBev, Coca-Cola, Diageo and Heineken — one customer was about 10% of 2025 net sales — and it makes glass in Mexico and Canada and imports into the U.S., so 2025 tariffs (and the USMCA's 2026 renewal) could raise costs and disrupt its North American footprint.
3 self-disclosed vulnerabilities, pulled from its own filings, each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Commodity & input dependence
- Energy (natural gas, fuel oil) = 10-20% of manufacturing costs — glass furnaces; partial pass-through (89% US/Canada, more exposed in Europe/S.America)medium
Glass-container manufacturing is energy-intensive: O-I's operations require a continuous supply of natural gas, fuel oil and electrical power, and energy is 10-20% of total manufacturing costs, with the share swinging on volatile natural-gas/fuel-oil prices (notably in North America and Europe). It is partly insulated where contracts pass natural-gas costs through (>89% of US/Canada sales volume), and it hedges via forward contracts/collars, but its European and South American/Mexican businesses carry more direct exposure. Raw materials (sand, soda ash, limestone, recycled glass) are multi-sourced. A core, volatile energy-commodity exposure.
“Depending on the location and mix of energy sources, energy accounts for 10% to 20% of total manufacturing costs.”
SEC filing →As of 2026
Customer concentration
- One customer ~10% of net sales (unnamed); largest customers are global beverage majors (AB InBev, Coca-Cola, Diageo, Heineken, etc.)medium
O-I's glass-container revenue is concentrated in a small set of global food & beverage majors: its largest customers include Anheuser-Busch InBev, Brown-Forman, Campari, Carlsberg, Coca-Cola, Diageo, Heineken, Molson Coors, Nestlé and Pernod Ricard, and one (unnamed) customer — present in both the Europe and Americas segments — was ~10% of consolidated net sales in 2025. Products are sold under annual/multi-year supply agreements. A volume pullback, packaging-mix shift (glass→cans/PET), or loss of a top beverage customer would have an outsized effect. The 10% customer is not individually identified and the named majors lack individual % attribution, so this is recorded as a concentration risk rather than graph edges.
“The Company's largest customers consist mainly of the leading global food and beverage manufacturers, including (in alphabetical order) Anheuser- Busch InBev, Brown Forman, Campari, Carlsberg, Coca-Cola, Diageo, Heineken, Molson Coors, Nestle, and Pernod Ricard.”
SEC filing →As of 2026
Regulatory & policy
- 2025 tariffs on imports from Canada/China/Mexico/EU; imports glass from Mexico to US; USMCA renewal 2026medium
O-I manufactures in Mexico and Canada (among many countries) and operates a U.S. distribution facility used to import glass containers from its Mexico business, so U.S. trade policy directly affects it. In February 2025 the U.S. imposed new/additional tariffs on imports from Canada, China, Mexico and the EU, with retaliatory tariffs from some countries; rates and product scope shifted repeatedly through 2025 (some suspended/modified). The USMCA is also up for renewal in 2026. Tariffs on its cross-border glass and input flows could raise costs and disrupt its North American manufacturing-and-distribution footprint.
“In February 2025, the U.S. imposed new and/or additional tariffs on imports from Canada, China, Mexico and the European Union.”
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