Coca-Cola hints that it’ll use more plastic bottles because of Trump’s aluminum tariffs
Coca-Cola isn’t too worried about President Trump’s new aluminum tariff (ICYMI: 25% on all steel and aluminum imports). It can always just use more plastic.
“If aluminum cans become more expensive, we can put more emphasis on PET [plastic] bottles,” Coke CEO James Quincey said on the company’s earnings call Tuesday.
Soda and beer sellers have been high on the list of companies that could be squeezed by the tariffs, but Quincey said it won’t be as bad as some fear. Tariffs on container materials won’t “radically change a multibillion-dollar US business,” and packaging is a small wedge of the company’s total cost structure, he said.
For smaller bev businesses, the levies could cause significantly more pain.
In its most recent environmental update in 2023, Coke said about 26% of its drinks were sold in aluminum or steel containers, compared to about 48% for plastics. In December, the company scaled back its sustainable packaging goals.
A study last year found that Coca-Cola is responsible for 11% of all global branded plastic pollution.
Soda and beer sellers have been high on the list of companies that could be squeezed by the tariffs, but Quincey said it won’t be as bad as some fear. Tariffs on container materials won’t “radically change a multibillion-dollar US business,” and packaging is a small wedge of the company’s total cost structure, he said.
For smaller bev businesses, the levies could cause significantly more pain.
In its most recent environmental update in 2023, Coke said about 26% of its drinks were sold in aluminum or steel containers, compared to about 48% for plastics. In December, the company scaled back its sustainable packaging goals.
A study last year found that Coca-Cola is responsible for 11% of all global branded plastic pollution.
