In response to the recent 25% tariffs on aluminum imports announced by President Donald Trump, Coca-Cola CEO James Quincey has outlined the company’s approach to managing potential cost increases. Quincey emphasized that while the tariffs are “not insignificant,” they are unlikely to dramatically impact Coca-Cola’s U.S. operations due to the company’s diversified packaging strategies and localized production.
To mitigate the effects of rising aluminum costs, Coca-Cola is considering increasing its use of PET (plastic) bottles, which already constitute nearly half of its packaging mix. Quincey stated, “If aluminum cans become more expensive, we can put more emphasis on PET bottles.” He also noted that packaging costs represent only a small portion of the company’s total expenses, suggesting that the overall financial impact of the tariffs would be manageable.
Financially, Coca-Cola reported a 1% year-over-year increase in comparable earnings per share to $0.73 for the first quarter of 2025, slightly surpassing analyst expectations. However, revenue declined by 1.5% to $11.13 billion. The company maintained its full-year earnings growth outlook, indicating confidence in its ability to navigate the current economic challenges.
Despite these challenges, Coca-Cola’s stock has shown resilience, with shares rising 1.1% following the earnings release and up 16.5% year-to-date, outperforming the Dow Jones Industrial Average, which is down 5.3% in 2025.
In summary, Coca-Cola is proactively addressing the implications of new tariffs through strategic adjustments in packaging and supply chain management, aiming to maintain stable pricing and continue its growth trajectory.
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