The global economy might be in a precarious position with President Trump's tariffs, but Coca-Cola doesn't seem to be feeling its effects.
In fact, in a recent announcement from the widely loved soft drink company, financial executives within Coca-Cola's reported better than average earnings for this past quarter, calling any issues stemming from Trump's tariffs "manageable."
As with many major international corporations, Coke is currently grappling with a few logistical challenges related to Trump's aggressive tariff policies, including a 25% tariff on the aluminum they use for their canned sodas.
In the wake of these new economic developments, Coke announced that they're currently exploring other means of packaging their products. According to AP News, this could result in Coke placing a greater significance on plastic or glass bottles in lieu of traditional aluminum cans.
Still, Coca-Cola's Chief Financial Officer, John Murphy, emphasized the potential hardships ahead for the company.
"Based on what we know today, the dynamic tariff landscape could impact pockets of our system's cost structure, as well as consumer sentiment in our markets," Murphy told investors in a conference call on Tuesday.
Per AP News, Coke's unit case volumes increased 2% this past quarter, with the largest rise in demand found in China, Brazil and India. Conversely, Coke's sales in North America saw a small decrease, dropping 3%. Prices for the company's trademark beverage also rose 8%.
Evaluating the drop in spending within North America, Coke's Chairman and CEO James Quincey said the decreased sales are likely a result of economic woes in both America and Mexico, with many people concerned about the state of the global economy.
"I think some of the geopolitical tension was just causing people to be a little more cautious with their spend," Quincey said. "A little less going, a little more keeping the money in the pocket."
In the meantime, Quincey has said that the company does not plan on raising prices in the near future.
In an interview with Yahoo Finance, the Coca Cola CEO said, "We're not [raising prices] out of cycle. Obviously prices went up because of a whole set of normal things -- last year's inflation -- that's already happened. But we're sticking to our current pricing plan."
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