March 22, 2025
Itinbox®
Recently, reports emerged suggesting that Coca-Cola is considering switching some of its beverages to plastic bottle packaging. In response, its supplier China Resources Materials provided an update on the potential impact.
On February 10, U.S. President Donald Trump announced a 25% tariff on all imported steel and aluminum, while simultaneously removing exemptions and quotas previously granted to certain trading partners.
On the same day, Coca-Cola CEO James Quincey stated that the aluminum tariffs would make aluminum cans imported from Canada more expensive. The company would have to either purchase aluminum cans domestically at higher prices or resort to plastic bottles as an alternative, both of which would drive up production costs and ultimately pass on the burden to American consumers.
In response, an investor asked China Resources Materials on an interactive platform whether Coca-Cola’s potential switch to plastic bottles would affect the company.
On the morning of February 17, China Resources Materials replied that Coca-Cola is one of its long-term clients. If Coca-Cola decides to switch from aluminum packaging to polyester materials for certain beverages, it would increase its demand for polyester bottle flakes. As one of its suppliers, China Resources Materials stated that the overall impact on the company would be minimal.
According to public information, ORG Technology is another Coca-Cola supplier and a leading company in the metal packaging industry. Established in 1994 in Hainan Province, ORG Technology provides comprehensive packaging solutions focusing on brand planning, packaging design and manufacturing, filling services, and information-assisted marketing. However, as of now, neither ORG Technology nor any other Coca-Cola suppliers, apart from China Resources Materials, have responded to this matter.
Recently, Coca-Cola released its financial report for the fourth quarter and the full year of 2024. The report showed that the company’s revenue for the fourth quarter was $11.544 billion, a 6% increase year-over-year, surpassing the market expectation of $10.7 billion. Net profit for the quarter was $2.213 billion, an 11% increase year-over-year. For the full year of 2024, Coca-Cola’s revenue reached $47.061 billion, up 3% year-over-year, exceeding the market expectation of $46.2 billion.
The report also indicated that Coca-Cola’s global unit case volume grew by 2% year-over-year in the fourth quarter, mainly driven by growth in China, Brazil, and the United States. The Asia-Pacific market’s unit case volume increased by 6% year-over-year.
Regarding performance in the Chinese market, Coca-Cola Chairman and CEO James Quincey stated during the earnings call: “We achieved growth in the Chinese market in the fourth quarter, with overall business showing a positive trend. Market share of our flagship Coca-Cola brand continued to expand, while sales of Sprite, Fanta, and Minute Maid also increased. Throughout the past year, our system actively implemented various effective measures, including accelerating the deployment of cold drink equipment and conducting integrated marketing campaigns in key channels.”
Additionally, Coca-Cola’s supply chain upgrade in China is steadily progressing. Quincey emphasized that Coca-Cola is continuously adapting to the changing external environment through its ‘All-Day, All-Year’ strategy, leveraging its global scale and local expertise to seize growth opportunities in the Chinese market.
Looking ahead to 2025, Coca-Cola expects its full-year organic revenue growth to be between 5% and 6%, with non-GAAP earnings per share growth ranging from 2% to 3%.
