Coca-Cola may be compelled to expand its reliance on plastic bottles in the United States if tariffs on aluminum imports result in higher costs for aluminum cans, the company’s Chief Executive Officer, James Quincey, revealed during a recent investor call.
The announcement follows President Donald Trump’s imposition of a 25% tariff on all imported steel and aluminum, a policy expected to significantly affect the price of canned goods across the country.
Quincey noted that Coca-Cola has the flexibility to shift packaging options in response to rising input costs.
“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.”
“For example, if aluminium cans become more expensive, we can put more emphasis on PET [plastic] bottles,” Quincey noted.
The beverage giant had previously committed to incorporating 50% recycled materials in its packaging by 2030. However, in December, that target was revised downward to a goal of 35%–40% by 2035.
Environmental organizations have criticized Coca-Cola for its extensive use of plastic, naming it the “World’s leading plastic polluter” for six consecutive years.
Aluminum, although generally more expensive than plastic, is widely regarded as a more environmentally sustainable option due to its superior recyclability. Coca-Cola has recently focused on aluminum packaging as part of its broader sustainability and marketing strategy.
According U.S Geological Survey, nearly half of the aluminum used in the U.S. is imported, making it highly susceptible to the newly imposed tariffs. While similar tariffs introduced in 2018 included certain exemptions for specific manufacturers, Trump has stated that no exclusions will be granted this time, either for individual products or specific countries.
Source: BBC
