Coca-Cola is ready to increase its use of plastic bottles if new US tariffs on aluminum take effect, CEO James Quincey said.
The shift would help the company control costs if aluminum prices rise under President Donald Trump’s latest trade measures.
“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,” Quincey said during an earnings call.
“For example, if aluminum cans become more expensive, we can put more emphasis on PET [plastic] bottles.”
On Monday, Trump announced a hike in tariffs on aluminum and steel imports, raising them from 10% to 25% starting next month.
While the policy is largely viewed as targeting China, the US imports minimal steel directly from the country.
Coca-Cola sources some aluminum from Canada, but Quincey downplayed the impact, saying the tariff increase would not significantly disrupt the company’s multibillion-dollar US operations.
“It’s not insignificant, but it’s not going to radically change a multibillion-dollar US business, and packaging is only a small component of the total cost structure,” he said.
Along with shifting toward plastic packaging, Coca-Cola may offset costs by sourcing more aluminum domestically or adjusting prices, Quincey noted.
Aluminum is more expensive than plastic but has a higher recycling rate. Coca-Cola has expanded its aluminum packaging in recent years with products like canned Dasani and Smartwater.
However, the company has faced criticism for its plastic waste, with Greenpeace naming it the world’s worst polluter for six consecutive years.
In December, Coca-Cola scaled back its sustainability commitments. It now plans to use 35% to 40% recycled material in packaging by 2035, down from its previous goal of 50% by 2030, and aims to recover 70% to 75% of the bottles and cans it sells each year.
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