Coke Is Raising Soda Prices Because of Aluminum Tariffs

Coca-Cola has hiked prices on its carbonated drinks because the recently enacted 10% tariff on imported aluminum has made Coke cans more expensive to produce.

CEO James Quincey admitted on the company’s earnings call Wednesday that the hike was “disruptive” but necessary.

“Obviously, while [customers] may understand the cost pressures that are out there on freight, on the increases in steel and aluminum and other input costs that affect the bottling system and affects some of our finished products, clearly, these conversations are difficult,” he said on the call.

A Coca-Cola spokesperson told CNNMoney that the increases will vary depending on retailer. The company said it’s up to stores to determine whether to raise prices for consumers.

“We have not commented on specific U.S. price increases, as they vary by channel and by customer (which is a retailer who sells our products). Also, note that increases are at the customer level. Customers have discretion in what consumers are charged on the shelf.

In March, Commerce Secretary Wilbur Ross said the aluminum tariffs is “a lot to do about nothing” and U.S. customers wouldn’t notice.

6 comments

  • J (@ds18301)

    Hang on your wallets folks — it’s just the beginning. Middle and lower-middle class Americans have already more than spent their paltry (and temporary) trump tax cut on gas-price increases alone. (The rich’s tax cuts are huge in comparison and are PERMANENT). As the trade wars heat up, this is only the beginning — you just payed 12 billion dollars we don’t have to soybean farmers to make up for their losses (that of course is not socialism, right?). How’s that “winning” working out for you? Of course for most of you, basking in the glow of having a r@cist president who blows his dog-whistle for you to express your own h@tred suffices still. But it will be interesting to see how much you are willing to pay for that….

    • Silverfish Imperetrix

      If it isn’t Swami Baloney with more “predictions”, inaccuracies, innuendos, and outright lies. I predict that by the time President Trump is out of office in 2025 you’ll be a babbling-street-corner-prophet-of-doom. If I happen to see you maybe I’ll flip you a dime or so.

  • Mopar Driver (@RustyMopars)

    The Tariff is an EXCUSE to fleece the consumer , with 36 cans to the lb.a raise of 10 percent tariff amounts to nothing – say >5 c on a case max. That that ONLY applies to that Aluminum made in Canada , The US made is not subject to it , The Idea of Trump is that the US should be producing more ( JOBS) and importing less china crap is great . When Getting out of plastic use and into Al is proper and If this is so drastic a rise then why is the AL scrap price stagnant at 50c / lb., Coke needs to use it’s network to collect scrap. What of those illegal Al stockpiles that Chinese execs. spirited away to Mexico and other places ?

  • Silverfish Imperetrix

    Yet nobody says a word when the nanny government doubles the price of soda with their ‘sugary drink tax’ because it’s for our own good. What a joke.

  • Frank The Lunatic

    You know, it’s all ridiculous with the pricing anyway – they act like they are loosing money. Many years ago I worked for Pepsico (Pepsi) and you know those 20 ounce sodas that you pay anything from $1.50 to $1.80 in stores for, well the employees get them for the wholesale price, which back then was .25-cents a bottle, now I believe the wholesale price is around .75-cents a bottle, so the stores are already charging you twice what they pay for the item, and the same holds true for the canned soda. Plastic bottling costs go up and down because of them being an oil related product, but the metal for cans is a more stable priced resource. So they can wah-wah all they want, saying they have to charge more, it’s all corporate greed. That 75-cent wholesale item still only costs them something like 40-cents to make or less.

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