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One possible side effect of tariffs? Shape moving packaging.
Coca -Cola CEO James Quincey said on Tuesday that the beverage company could adjust the packaging mix in response to the cost increase. In particular, this can mean to emphasize aluminum cans and use more plastic.
“If one package increases slightly, we continue to hold other packaging products that can compete in a cheap space.” “For example, if aluminum cans are more expensive, you can emphasize pet bottles.”
President Donald Trump announced 25%of tariffs on aluminum and steel imports, which will be held on March 12 this week. Manufacturers are worried that they will raise their costs without exemption, and consumers may ultimately pay more for canned products. Last week, Trump also planned a variety of tariffs on China, Canada and Mexico.
Nevertheless, Quincey tried to put the cost impact and the ability to alleviate the Coca -Cola Guy with perspective.
“We believe that there is a risk of exaggerating the increase of 25% of aluminum prices compared to the entire system. It is not meaningless, but it will not fundamentally change billions of dollars in US business. ” “It would be better not to have it … but we will manage the way.”
Coca -Cola’s exposure to aluminum and steel is more than a quarter of the company’s packaging mix as of 2023. On the other hand, if Coca -Cola has moved more products to plastics, it will expand the substrate that has already accounted for half of its own. packaging.
In Tuesday, Coca -Cola’s earnings announcement emphasized the increase in the role of a “cheap premium” returnable glass bottle in an international market portfolio. COCA-COLA reported in 2024 that it added 1.6 billion “unit cases” to the total company’s total in 2024.
“In 2018, the company launched a universally returned glass bottle in Latin America, reducing and increasing the input cost. Collection potential And we are expanding drinks, ”the company said. “Universal bottles have quickly expanded to the global market, including Germany, South Africa and Vietnam.”
The company said it is already a key product at home in Western Europe. In the emerging market, RGB said Coca -Cola “helps to recruit consumers and develop the commercial beverage industry.”
