The Fortune 500 company’s CEO, James Quincey, told investors on Tuesday that Coca-Cola could pivot to more plastic packaging if aluminum prices surge due to the 25% import tax on steel and aluminum ordered by President Trump.

The move is designed to boost domestic manufacturing but will likely raise costs for companies that rely on imported materials.

“If aluminum cans become more expensive, we can put more emphasis on PET [plastic] bottles,” Quincey said during an earnings call.

He added that while packaging is only a small component of the company’s total costs, Coca-Cola has strategies to ensure affordability and maintain consumer demand.

Quincey, however, sought to downplay the impact of the tariffs, saying: “I think we’re in danger of exaggerating the impact of the 25% increase in the aluminum price relative to the total system. It’s not insignificant, but it’s not going to radically change a multibillion-dollar U.S. business.”

The Coca-Cola CEO also noted that the company has hedging programs in place and is exploring various mitigation strategies, including potentially sourcing aluminum domestically.

Coke’s sustainability goals face increased pressure

The potential shift comes at a delicate time for Coca-Cola, which environmental groups have named as the top global plastic polluter for six years in a row.

Coca-Cola has increasingly relied on aluminum cans to appeal to environmentally conscious consumers, despite the material’s higher cost.

A shift toward plastic bottles, even if temporary, could put the company at odds with consumers and environmental advocates pushing for reduction of single-use plastics.

In December, the company scaled back its sustainability target, now aiming to use 35% to 40% recycled materials in its packaging by 2035, down from an earlier goal of 50% by 2030.

Coca-Cola’s Q4 results fizz past Wall Street expectations

Despite the challenges, Coca-Cola reported strong fourth-quarter results, with earnings and revenue surpassing analysts’ expectations.

The company’s net sales rose 6% to $11.54 billion, while organic revenue climbed 14%, largely driven by higher prices and higher demand in key markets, including the U.S., China, and Brazil.

Coca-Cola’s iconic namesake soda fizzed 2% higher in Q4, while Coke Zero Sugar skyrocketed a whopping 13%.

Meanwhile, Coke’s other liquid assets had a mixed pour. The water, sports, coffee, and tea division managed to trickle up 2%; Smartwater and tea leaves turned a profit, but sports drinks fumbled, and coffee sales went cold, both taking a dip in the quarter.

Looking ahead to 2025, Coca-Cola projects organic revenue growth of 5% to 6%, with comparable earnings per share expected to rise 2% to 3%.

Quincey acknowledged that pricing may play a larger role next year, telling analysts: “It seems more likely in ’25, there’ll be a little more price and a little less volume, but there will be volume growth.”