Coca-Cola may need to increase its use of polyethylene terephthalate (PET) packaging in the US due to the 25% tariff on foreign steel and aluminium introduced by the Trump administration.
These tariffs are expected to drive up the cost of aluminium cans, which could significantly impact the price of the country’s canned beverages and foods.
Coca-Cola CEO James Quincey has indicated that the company currently imports aluminium from Canada for its drink cans.
In light of the tariffs, the company is exploring ways to mitigate potential price increases, including the possibility of transitioning to plastic bottles in its portfolio.
Despite the concerns, Quincey has downplayed the potential effect of the tariffs on Coca-Cola’s overall business. He claimed that packaging represents only a minor fraction of the company’s total expenses.
The Trump administration first imposed tariffs on foreign steel and aluminium imports in 2018, during Trump’s initial term.
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By GlobalData
Coca-Cola has been identified by researchers and environmental groups as one of the world’s leading polluters in terms of plastic waste.
The company has been gradually increasing the proportion of its beverages sold in aluminium cans as part of its commitment to sustainability goals.
Quincey was quoted by various media agencies as saying: “I think we’re in danger of exaggerating the impact of the 25% increase in the aluminium price relative to the total system.
“It’s not insignificant, but it’s not going to radically change a multibillion-dollar US business, and packaging is only a small component of the total cost structure.”
Last month, Coca-Cola Nigeria, together with its authorised bottler, Nigerian Bottling Company, opened a new domestic packaging collection hub in Apapa, Lagos.
