Coca-cola says it could use more plastic due to Trump tariffs

Published On Feb 11, 2025, 11:27 PM

Coca-Cola's CEO, James Quincey, indicated that the company may increase its use of plastic bottles in the U.S. if aluminum can prices rise due to new tariffs imposed by President Trump. This could lead to more environmental concerns, as Coca-Cola has already faced criticism for its plastic waste. The company recently adjusted its sustainability goals, reducing its target for using recycled materials in packaging. Despite the potential cost increases from tariffs, Quincey emphasized that packaging costs represent a small portion of overall expenses for Coca-Cola.

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KO

Negative

If Coca-Cola shifts to using more plastic bottles, it could face a backlash from environmental advocates, which may negatively impact its brand image and long-term growth. Additionally, increased reliance on plastic could lead to operational hurdles and higher costs if global plastic regulations tighten. However, if the company's overall costs do not significantly increase due to tariffs, they may maintain stable sales. Investors should consider these factors when analyzing the stock's potential performance.

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