Coca-Cola: Aluminum Tariffs, Innovation to Drive Growth
Despite a 25% tariff on aluminum imports, Coca-Cola (KO) remains confident in its ability to manage costs and avoid higher consumer prices. CFO John Murphy described the price increase as "a relatively small amount" in the overall supply chain and highlighted the company's flexibility in adjusting margins.
Consumers can expect to see new can variations as part of Coca-Cola's revenue growth strategy. The company is focusing on different sizes and packaging designs to drive innovation.
Murphy acknowledges tariffs as a variable, but emphasizes the team's ability to adapt to unforeseen challenges. Coca-Cola recently exceeded analysts' expectations in its fourth quarter earnings report, with revenue and EPS beating estimates.
For 2025, the company projects 5-6% organic revenue growth and 2-3% adjusted earnings growth. Shares of KO surged over 4% following the earnings release, indicating investor confidence. While currency headwinds are expected, the company's international presence remains a significant growth driver.