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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