Coca-Cola Considers Increased Use of Plastic Bottles Amid Tariffs

Coca-Cola Considers Increased Use of Plastic Bottles Amid Tariffs

Coca-Cola is contemplating a shift toward more plastic bottles in the US as a response to potential increases in aluminum can costs due to new tariffs. The company's CEO highlighted this during a recent investor call.

The decision follows the imposition of a 25% import tax on all steel and aluminum entering the US, which is expected to raise the prices of canned food and beverage products. As a result, Coca-Cola may need to adjust its packaging strategy to maintain affordability.

In December, Coca-Cola revised its sustainability target, reducing the goal of using 50% recycled materials in packaging by 2030 to a new target of 35% to 40% by 2035. Despite efforts to minimize the impact of the tariffs, the company may emphasize the use of PET plastic bottles if aluminum costs rise.

Environmental groups have frequently criticized Coca-Cola for its role in plastic pollution. Although aluminum cans are more recyclable, the potential cost increase may drive a temporary shift toward plastic packaging.

The US sources nearly half of its aluminum from imports, meaning the 25% tariff could significantly affect can prices. Unlike previous tariffs in 2018, which allowed some exclusions, the current policy does not permit exemptions for specific products or countries.

In a related move, a recent executive order ended a government initiative to replace plastic straws with paper, reversing a measure aimed at reducing plastic pollution.
Image by Mettis Global

Comments
Leave a comment
Your Email Address Will Not Be Published. Required Fields Are Marked *
Recent posts