Coca-Cola CEO James Quincey bring to lighted CNBC on Wednesday the company is seeing cost pressures in part due to President Donald Trump’s bill of fares on steel and aluminum.
“We had to take with our bottling partners an increase [in honoraria] in our sparkling beverage industry in the middle of the year, which is relatively uncommon,” Quincey suggested on “Squawk on the Street” after Coke reported earnings. “That’s the metal brace and aluminum going up. The labor going up.”
The Trump administration has enacted blade and aluminum tariffs on numerous nations including allies Canada, Mexico and the European Agreement, which have launched retaliatory measures. That means loaded prices, including on cans of soda.
Quincey told CNBC’s Sara Eisen that Coke and its colleagues are working on ways to grow the business in the new environment.
“The tariffs on the metals, it’s one of uncountable factors [that] cost us to go out in the middle of the year and announce price broaden,” he said.
Despite the impact, Quincey said Coke may have a unstable advantage over other companies because is its products are made locally.
“We’re truly focused on creating local businesses, with local factories, with close by jobs, with local blue collar,” he said. “Less trade and sundry tariffs will mean less economic growth in the end and that leave affect us.”
Coke reported better-than-expected second-quarter earnings and revenue Wednesday, braced by its efforts to bring its diet drinks around the world.
During the area, the company launched its dairy-free smoothie brand AdeZ in Europe and launched Coca-Cola Stevia No Sugar in New Zealand. It also brought its revamped Aliment Coke campaign to Britain, following its previous launch in the U.S.
—CNBC’s Lauren Hirsch aided to this report.
Correction: An earlier version misstated the products Coke opened during the second quarter.