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Trump Tariffs Prompt Coca-Cola To Hike Prices

ATLANTA -- Coca-Cola chief executive James Quincey said cost pressures from President Donald Trump's steel and aluminum tariffs will force the beverage giant to raise its prices. He said the price hikes will vary by channel and by customer. It's unknown how much prices will go up, and which products in the vending channel will be affected. Coke's chief said in an interview with CNBC that rising costs of materials and labor to produce drinks have led to the company starting to pass on some of those costs ...

July 29, 2018

ATLANTA -- Coca-Cola chief executive James Quincey said cost pressures from President Donald Trump's steel and aluminum tariffs will force the beverage giant to raise its prices. He said the price hikes will vary by channel and by customer. It's unknown how much prices will go up, and which products in the vending channel will be affected.

Coke's chief said in an interview with CNBC that rising costs of materials and labor to produce drinks have led to the company starting to pass on some of those costs to consumers. He specified only that the unusual middle-of-the-year price hike will be on sparkling beverage products and that he expects the company's bottlers and retailers to pass along the higher prices to consumers.

While Quincy blamed U.S. tariffs on Chinese imports implemented by President Trump earlier this year, he also told the Wall Street Journal that there were a variety of factors at play including higher commodity costs.

Coke reported better-than-expected second-quarter earnings and revenue, helped by its efforts to emphasize its diet drinks around the world.