ATLANTA -- Retailers will likely see an increase in soda prices soon as manufacturers pass along the cost pressures of a truck-driver shortage and tariffs levied by the Trump administration, according to a report in Restaurant Business magazine.
The Coca-Cola Co. and its bottlers are already increasing the prices of carbonated beverages in North America, a “pretty unusual” move for the company to make midyear, CEO James Quincey said July 25 on the CNBC investment program “Squawk on the Street.” He tied the boost directly to the increased cost of aluminum and steel, the result of the stiff tariffs levied by the White House several months ago to give U.S. suppliers an edge in pricing, and “broad-based inflation out there.”
The latter issue, Quincey subsequently explained to investors, included a surge in freight costs, the result of shippers struggling to find truck drivers for interstate hauls. Many have dramatically increased the pay and benefits they offer prospective hires.
Quincey also said Coke expects retailers to pass along the increases to consumers.
“The customer conversation is not a comfortable conversation, but they can see what’s happening,” he said during the CNBC program.
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