Coca-Cola warned that it may need to shift towards using more plastic bottles if Donald Trump's tariffs on foreign aluminium raise costs for cans. The company's CEO, James Quincey, indicated that importing aluminium from Canada could lead to increased prices, prompting a reevaluation of packaging strategies to maintain affordability. However, he downplayed the overall impact of the tariffs, highlighting that packaging costs represent only a small fraction of the total expenses of the multibillion-dollar business. Despite increased sales in cans as part of sustainability goals, Coca-Cola faces scrutiny for its plastic waste contributions.
As it relates to our strategies around ensuring affordability and ensuring consumer demand, if one package suffers some increase in input costs, we continue to have other packaging offerings that will allow us to compete in the affordability space.
I think we're in danger of exaggerating the impact of the 25% increase in the aluminium price relative to the total system.
The Coca-Cola boss, however, also sought to play down the potential impact of tariffs on the business, saying that packaging only accounted for a small part of total costs.
Coca-Cola has previously been found to be among the world's most polluting brands when it comes to plastic waste, according to researchers and environmental groups.
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