Former President Joe Biden's assertion that plastic pollution is a "crisis" comes at a complicated time for Coca-Cola. The company faces potential shifts in packaging strategy due to President Donald Trump's decision to impose a 25% import tax on all steel and aluminium entering the United States. With the nation importing nearly half of its aluminium, according to the United States Geological Survey, these tariffs are poised to drive up costs for canned goods. Coca-Cola's chief executive, James Quincey, indicated that the company might pivot towards selling more drinks in plastic bottles in the U.S. to mitigate the impact of rising aluminium prices.
Coca-Cola has invested significantly in promoting aluminium containers as part of its marketing and sustainability efforts. However, environmental groups have consistently criticized the company for being the "top global plastic polluter" for six years running. The potential shift back to plastic bottles raises questions about the company's commitment to sustainability. While Coca-Cola had initially aimed to use 50% recycled materials in its packaging by 2030, it has since revised this target to 35% to 40% by 2035.
The new tariffs on steel and aluminium are expected to make cans more expensive, impacting not just beverage companies but also canned food producers across the United States. Trump has made it clear that there will be no exemptions from these tariffs for individual products or specific countries. This policy is a stark contrast to measures previously signed by former President Joe Biden, who had taken steps towards reducing plastic usage, including an executive order to replace plastic straws with paper—a measure Trump has since reversed.
James Quincey addressed the potential impact of the tariffs, emphasizing the company's flexibility in packaging options.
"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." – James Quincey
He further explained the company's strategy in the event of increased aluminium costs.
"For example, if aluminium cans become more expensive, we can put more emphasis on PET [plastic] bottles." – James Quincey
While packaging constitutes only a small part of Coca-Cola's overall expenses, the company aims to minimize any adverse effects these tariffs might have on its business. The move towards more plastic usage, however, is likely to draw criticism from environmentalists concerned about escalating plastic pollution.