CANNED COMPANIES TO OFFSET ALUMINIUM TARIFFS VIA PRICE
Soup, soda and beer makers can’t seem to put a lid on the effects of the recent aluminium tariffs. These Imports of metal got the slapping with a 10% fees by U.S. President Donald Trump in early July is making cans more expensive. Not good news for canned companies and their pricing strategies. Furthermore, forcing food and beverage companies that rely on them for packaging to consider price increases. He also believes there can be other ways to offset the costs.
The Campbell Company of Canada. This company produces canned soup at its soon-to-close Etobicoke, Ont. plant. On a “broad range of products”, late August will see a huge jack-up in prices.
MOLSON COORS BREWING:
Molson Coors Brewing Company also deals in canned products admitted on its most recent earnings call. To make a similar move, the company agreed that they might be enforced. “We’ve made no secret about the fact related to aluminium tariffs and freight. As well as the unjustified increase in the Midwest premium (aluminium surcharge). Both are having a negative impact on our cost structure. In addition to this, they may factor into future pricing decisions,” Molson. He is the president and chief executive officer, Gavin Hattersley.
COCA COLA’S STRATEGY:
Told to the US media most recently, the CEO of Coca Cola, James Quincey. As according to rising labour costs, and tariffs, they shall increase the prices of canned products. However, in a statement, spokesperson Shannon Denny said in Canada. He said the company faced “similar cost pressures as the U.S.”. However, he wasn’t sure if it would implement the same increases here.
THE COTT CORP.:
Meanwhile, Mississauga-based Cott Corporation, which produces water, coffee and colas. They didn’t seem to be considering price hikes but said it had instead applied for tariff exemptions. These exemptions are for some of its products and was looking at alternative suppliers to mitigate costs.
Thomas Harrington, Cott’s president of services and chief executive officer of its DSS bottled water and coffee business unit, said the company was facing tariff-related costs because it procures coolers for product distribution from China, which has imposed about $60 billion of tariffs on products from the U.S., where Cott does plenty of business.
As a result, he said, Cott is working towards “relatively modest” rent increases for the coolers customers can borrow from the company.
“While we’ve preferred not to see these types of costs impact our business, we understand that these external factors come and go all the time,” he said. “We are well positioned to manage these types of issues.”