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Aluminum Tariffs to Raise Price of Beer
Also, did you know Coca-Cola offers reusable glass bottles?
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 portfolio—though 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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I grew up with reusable bottles in Mexico for beer and soda, glass bottles. They also have reusable plastic bottles although in Mexico in the last 20 yrs they pour your soda in a plastic bag and stick a straw, just contributing to the trash pile.
Exactly! It was such a beautiful system: CC distributors would exchange crates of full bottles for empty ones with the retailer, the retailer would exchange full bottles for empty bottles with consumers and consumers would simply return their empty bottles at the end of use. No garbage whatsoever.
If nothing else I'm hoping people ask, "Why don't we make that here?" Not out of any jingoistic notion, but questioning why US companies have been offshoring so much of so many industries while consumers see no difference in retail prices. Tariffs do nothing but cause retailers to pass the cost on to consumers, but the reality is companies have been doing this for decades for no other reason than to make their profits go up, and letting production fall to such levels that we're no longer able to manufacturer some goods here is purely the fault of greed, not of economy or environmental concerns.
The US only has very small deposits of bauxite. The reason that the US relies on imports is geology. I can’t imagine there’s a significant labour saving (the usual reason for offshoring) by getting aluminium from Canada.
Yes, that's why I said "manufacturing" and nothing about resources.