Food and beverage industry saddened by proposed price hike on cansheet and primary aluminum
WASHINGTON, DC—Following the Commerce Department’s recent examination of security impacts of aluminum imports, the CEO’s of some of the leading food and beverage companies and trade associations came together to write a joint letter asking for policy change that protects the industry. Ensuring fair prices and avoiding disruption of a thriving industry is essential to United State’s economic success. To read a copy of the full letter, click HERE.
The letter notes a 10 percent fee on aluminum would cost beer and beverage producers $256.3 million, a 20 percent fee would cost $512.5 million, and a 30 percent fee would run $768.8 million.
“Imposing an artificial price hike on American companies that employ millions of people will weaken the economy and hurt working families by raising prices, costing jobs and reducing incomes unfairly,” said Susan K. Neely, American Beverage Association President and CEO. “Tariffs on our companies’ imports of primary and cansheet aluminum will greatly increase our manufacturing costs and harm many more workers than it helps.”
“Imports of primary aluminum and cansheet used to manufacture beer cans do not threaten national security,” said Jim McGreevy, Beer Institute President and CEO. “Aluminum is critical to the beer industry and its employees, since more than half of the beer produced annually are packaged in aluminum cans or aluminum bottles. Any trade restriction on primary aluminum or cansheet imports would disrupt the market and increase costs to brewers and beer importers as aluminum customers.”
“The administration should take into consideration the unintended consequence of a trade action against aluminum cansheet and primary aluminum that would ripple across the supply chain. Like most industries, can makers depend on predictability in supply and price. If the aluminum supply is hindered by unnecessary tariffs or trade restrictions, it could lead to supply inefficacies and affect product availability,” said Robert Budway, Can Manufacturers Institute President. “Even a small tariff will result in greater uncertainty about prices, supply, financing and would dramatically curtail investment and hiring in the United States.”
Facts about the economic contribution of the aluminum, beer, and beverage industries:
The importation of aluminum is a critically important to American consumers. The aluminum can industry produces 96 billion food, beverage, and aerosol containers, employing more than 11,000 American workers in 164 plants in 33 states, Puerto Rico, and American Samoa. In total, the aluminum can industry generates $13.3 billion in economic activity.
In addition, the beer industry supports more than 2.2 million American jobs, generating more than $350 billion annually in economic output. In 2016, 56 percent of the beer produced in the United States was packed in aluminum cans or aluminum bottles.
The non-alcoholic beverage industry accounts for nearly 240,000 direct industry jobs, and another 788,000 jobs in grocery, retail, and other industries that depend on beverage sales. The industry has a $166.5 billion direct economic impact, $21.1 billion of which is wages paid to American workers.
The companies and trade associations that signed the letter include:
- American Beverage Association
- Ardagh Group
- Ball Corporation
- Beer Institute
- Brewers Association
- Can Manufacturers Institute
- The Coca-Cola Company
- Constellation Brands Beer Division
- Crown Holdings
- Dr Pepper Snapple Group
- HEINEKEN USA
- Molson Coors Brewing Company
- National Association of Beverage Importers
- National Beer Wholesalers Association
- PepsiCo North America
- Rogue Ales
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