Coca-Cola Co. will shift more of its packaging from aluminum to plastic bottles if President Donald Trump's latest wave of tariffs takes effect.
CEO James Quincey said Feb. 11 that while the 25 percent tariff hike on aluminum will affect costs, it won't significantly disrupt the company's multibillion-dollar U.S. business. The beverage giant may also source domestic aluminum and adjust pricing to mitigate costs.
Aluminum is more expensive than PET, but it is also more widely recycled. Coke has always had the ability to shift between the two packaging substrates, so this is nothing new for its suppliers and bottlers.
The shift comes as Coca-Cola recently downgraded its sustainability goals, reducing its recycled material target and bottle collection commitments.