We hope you have an empty fridge because you might want to stockpile cans of Coke before prices spike. On Wednesday, July 25th, Coca-Cola CEO James Quincy told CNBC that “cost pressures” within the company will result in price hikes on our favorite Coca-Cola beverages. The cost pressure Quincy referred to is directly related to President Trump’s tariffs on steel and aluminum.
The steel and aluminum tariffs, which President Trump enacted on Canada, Mexico, and the European Union, are not only affecting huge industries like the automobile, aerospace, and construction industry. The tariffs have ultimately trickled down to affect the food and beverage market that rely on the use of aluminum cans to package certain food items.
If companies have to pay more for their materials, then consumers must pay more for company goods.
“We had to take with our bottling partners an increase [in prices] in our sparkling beverage industry in the middle of the year, which is relatively uncommon,” Quincey told CNBC. “That’s the metal steel and aluminum going up. The labor going up.”
Quincy said that the Coca-Cola company has held several “uncomfortable” discussions with consumers about the Coke price increase. Although no one is particularly happy with the notion of paying more for their fizzy drinks, Coca-Cola is working with consumers to keep their relationship strong and keep customers engaged with the company.
BREAKING: Coca Cola will raise their prices on cans of soda due to Trump's Tariffs on Aluminum.— Ed Krassenstein (@EdKrassen) July 26, 2018
Finally, the tariffs will hit home for President Trump, who is a habitual soda chugger.
I really don't care, do u?
“The tariffs on the metals, it’s one of many factors [that] cost us to go out in the middle of the year and announce price increase,” Quincy continued after confirming prices will indeed go up. “There’s some pressure in the system.”
Coca-Cola is just one of the many American companies that will be feeling the pressure of Trump’s tariffs in the coming months. We might have to pick up a few extra shifts just to enjoy our after-work Coke. Ugh.
We’re bummed about this news, too. Watch the So Yummy team make a cake in the shape of Coke bottle, and you’ll probably feel a little bit better.
Pretty awesome, right?