Monster Beverage is adopting a cautious approach in response to the recent 25% tariff on aluminum imports announced by President Donald Trump, effective March 12. CEO Hilton Schlosberg stated during a February 27 earnings call that it would be “really premature” to discuss specific mitigation strategies, including potential price increases, as “no one really knows what’s going to happen.”
In the interim, Monster is reviewing its international pricing strategy, which will depend on the evolving trade landscape and competitors’ actions. Schlosberg emphasized the company’s commitment to enhancing stockholder value, noting that while they are open to price adjustments where feasible, they will avoid unnecessary increases that could disadvantage their brands.
The beverage industry is closely monitoring the impact of these tariffs, especially given that over 5 million tonnes of aluminum were imported into the U.S. in 2024, according to the International Trade Administration. Packaging manufacturers have expressed concerns, highlighting that current U.S. metal production capacity may not meet growing demand, potentially leading to higher costs for both packagers and consumers.
Monster has proactively managed aluminum supply challenges in the past. In 2022, the company addressed elevated freight costs by adding two U.S.-based aluminum can suppliers to its network, aiming to reduce reliance on imports.
Currently, Schlosberg noted that Monster is “hedged to quite a nice extent in 2025 with aluminum,” providing some insulation against market fluctuations.
Other beverage companies are also assessing the potential impact of aluminum tariffs. Molson Coors Beverage Company reported that most of its aluminum for U.S. consumption is sourced domestically, with minimal imports from Canada and Mexico. Conversely, Coca-Cola has indicated it might adjust its packaging mix, potentially shifting from aluminum cans to more plastic, to combat rising costs.
As the situation evolves, beverage companies like Monster continue to monitor the trade environment and adjust their strategies accordingly to mitigate potential impacts on their operations and pricing structures.
Your go-to for supply chain report news updates: The Supply Chain Report. For international trade tools, see ADAMftd.com.
#MonsterBeverage #AluminumTariffs #TradePolicy #BeverageIndustry #SupplyChain #PackagingCosts #EconomicImpact #MolsonCoors #CocaCola #MetalImports #BusinessStrategy #MarketTrends #TariffImpact #CommodityPrices #EnergyDrinks
