Aluminum Tariffs to Raise Price of Beer
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An unfortunate knock-on effect of Trump's tariffs on aluminum imports will hit the packaging sector. While Coca-Cola is currently available in aluminum cans, the company revealed in an earnings call that "if aluminum cans become more expensive, we can put more emphasis on PET bottles." Reducing plastic use is not a priority of this administration, and Coca-Cola's shift won't ruffle any governmental feathers. Breweries and beer drinkers will also be affected. Tour average beer manufacturer doesn't have the diverse portfolio of packaging options of a Coca-Cola, and those breweries heavily invested in aluminum packaging will have no choice but to raise prices.Microbreweries in particular will be hard-hit. These smaller outfits lack the deep pockets of name-brand breweries, and being on the crunchier side of the market, have largely shifted to aluminum over bottles for environmental reasons. They also use tanks, kegs and brewing equipment made of steel, which is also subject to the new tariffs. They will need to raise costs in order to survive. Also: Did you know that Coca-Cola has been experimenting with reusable glass bottles? Those make up 8.8% of their packaging portfoliothough sadly, they're primarily used overseas, in countries like Germany, Austria, Spain, South Africa and Vietnam. The company says they're available in "select restaurants" in the U.S., but doesn't name any. America remains a laggard in recycling concerns.
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