Coca-Cola may have to sell more drinks in plastic bottles in the United States if President Donald Trump’s prices end up making the aluminum cans more expensive, said the company’s general manager James Quincey, when a call with investors.
This occurs after Trump has ordered an import tax of 25% on all the steel and aluminum entering the United States, which could eventually increase the price of canned food and drinks in the country.
In December, the drinks giant reduced its durability goal of using 50% of recycled materials in its packaging by 2030, using 35% to 40% by 2035.
Environmental groups called Coca-Cola as a “world’s leading plastic pollutor” for six consecutive years.
“If a package undergoes an increase in input costs, we continue to have other packaging offers that will allow us to compete in the affordable area,” said Quincey.
“For example, if the aluminum cans become more expensive, we can further focus on PET (plastic) bottles”.
The boss of Coca-Cola also sought to minimize the impact of prices on his business by saying that the packaging is only a relatively low component of the costs of his business.
In recent years, Coca-Cola sold more products in aluminum containers as part of its marketing and sustainability strategies.
Although they are generally more expensive, aluminum cans are also much more recyclable than plastic bottles over time.
The United States imports almost half of the aluminum it uses, according to the United States Geological Survey, therefore a price of 25% on all imports is likely to make cans even more expensive.
After Trump first ordered the steel prices in 2018 the first time, many car manufacturers have won “exclusions” of these import taxes.
But this time, Trump said that there would be no exemption from the rules or for individual products or for special countries.
In a separate decision which is likely to contribute to plastic pollution, Trump has signed an executive decree earlier this week ending an effort by the US government to replace plastic straws with paper.
The order canceled a measure signed by former president Joe Biden, who had qualified plastic pollution as “crisis”.
