How long can you hold out on keeping
that price level?
We're going to keep trying to hold it
and um we've been doing it for 30 plus
years and we don't want to get
sidetracked by this recent tariff effect
and we're hoping that the tariff effect
will settle down and the people who are
taking advantage of the tariff situation
uh get backed off by some government
officials. uh and the people who are
involved in the supplying of aluminum
are pushing along a tariff on aluminum
even though most of the aluminum is
recycled in America. So I think that's
unfair and I don't think that's what the
administration wanted.
Don, can you just give us a little bit
more insight? Any numbers that you can
put on when it comes to the cost that
you are absorbing so that it doesn't get
passed on to the consumer? Well, you
know, the Midwest premium, which is the
uh was was put in place in the 80s uh to
cover the cost of freight from the coast
into the middle of the country, uh used
to be a nickel to 8 cents a pound, now
it's close to 70 cents a pound. Uh a lot
of that is due to the tariff effect.
Even though a lot of the aluminum is
collected from recyclers in America and
um and used in a lot of aluminum
products, uh the good news about
aluminum, it's recycled over and over
again. It could be done thousands of
times. An average can can be uh used and
used and used. So the the power of
aluminum is the fact that it's very
recyclable. And the fact is a lot of
it's being collected in America due to
recycling programs and uh being reused
to make containers. uh but the effect of
the tariff shouldn't be applied to the u
recycled metal that's collected in
America but in fact it is. So there's
manipulation happening and hopefully
that can be resolved. Uh the other side
of it as well is uh you know some of the
aluminum is smelted in Canada uh because
a lot of the smelters in America closed
up because of the cost of energy versus
the cost in Canada and um and hopefully
um some of the things that go on with
generating power could be looked at as
well. You know we we're reducing the
price on plastic because the price in
crude has dropped pretty dramatically
over the last six months. So, we're
reflecting that cost savings by giving
the consumer a lower price on a product
that went up a while ago and now it's
coming back down. So, right now, our
intention is to hold the price on cans
as long as we can. If something uh uh if
this kind of thing continues and other
effects might happen like uh cost of
transportation, then we'll have to take
another look. But right now, we're
holding the price.
Uh, Don, we've seen a number of other
CEOs and business leaders visit the
White House, lining up outside to talk
to President Donald Trump and his aids
about tariffs and trade policy. Have you
had any engagement with the
administration? And of course, keep in
mind that President Donald Trump is
known to be fond of soft drinks himself.
Well, I have not had any conversation
with anyone, but I'm here and willing to
have conversation if they want to be uh
uh educated about what in fact is going
on. a lot of things that are
unintentionally happening. I think uh
you know I think the average American
likes to the the idea of making more
things in America and keeping business
close to home. Uh but some things just
can't happen here in America. Like you
know we're in the coffee business.
They're not growing many coffee beans in
Brooklyn or Manhattan and bananas and
mangoes and all the fruits that we use
come from countries where they grow. uh
to put a a tariff on those kind of
things that can never be made here is
kind of foolish because it ends up
affecting the consumer and the consumer
is going to have to pick up the tab. I
don't think the White House wants that.
I don't certainly want it as a marketer
uh because I don't think Americans need
another price increase on a drink like
ours or anything else for that matter.