Coca-Cola calls itself a ‘local business,’ plans to ‘manage through’ tariffs

Coca-Cola on Tuesday said it was taking steps to mitigate and hedge against the impact of tariffs, noting that much of its supply chain is already localized.

“We are predominantly a local business when it comes to making each of the beverages,” CEO James Quincey told analysts. “The vast majority of everything that’s consumed in the US is made in the US.”

He added: “While it is a global business, it’s very local. So yes, every bottler will be importing something from somewhere as a piece of the puzzle, but the economics are more predominantly local than they are global. It is a piece of the puzzle we need to manage through.”

• Similar to Coca-Cola, Tyson Foods and Catalyst Brands have also expressed confidence that they will be able to weather trade disruptions, though not without making some adjustments.

To the extent that tariffs do become a challenge, Coca-Cola has a two-part strategy, Quincey explained: First, it has “hedging programs in place that look to assure supply and price going out.” Second, it will look at mitigation efforts, which could include efficiency investments and adjustments to sourcing.

Getting adjusted: As tariffs loom and market volatility rises, 60% of companies are overhauling their supply chains, per a report from operations platform RELEX based on 579 retail, consumer packaged goods (CPG), and wholesale professionals across multiple countries.

The study found that the majority of companies are investing in diversification, automation, and supply chain resilience in response to more complex trade relations globally.

• 52% cited demand volatility as their biggest challenge.
• 47% singled out tariffs as a growing threat.
• And 62% are addressing these issues with “efficiency improvements and price adjustments.”

“Supply chains are in a pressure cooker—between tariffs, demand shifts, and unpredictable disruptions, the outdated and traditional way of operating isn’t sustainable,” Dr. Madhav Durbha, group VP of CPG and manufacturing at RELEX Solutions, said in a statement. “Companies that lean into AI, automation, and supplier diversification will not only weather this volatility but emerge stronger. The ones that don’t risk falling behind.”